Question
Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. Year 1 2 3 4 5
Hickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years.
Year | 1 | 2 | 3 | 4 | 5 |
Forecast demand | 55 | 73 | 75 | 77 | 77 |
Currently the manufacturer has six machines that operate on a two-shift (eight hours each) basis. Thirty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 20 minutes to produce.
What is the effective capacity of the factory? Round your answer down to the nearest whole number.
units/year
Given the five-year forecast, how much extra capacity is needed each year? Use a minus sign to enter an answer, if there is excess capacity. Round your answers to the nearest whole number.
Year | 1 | 2 | 3 | 4 | 5 |
Extra capacity needed (units) |
Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number.
Year | 1 | 2 | 3 | 4 | 5 |
Additional machines needed |
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