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Hickory Manufacturing Company forecasts the following demand for a product ( in thousands of units ) over the next five years. Currently the manufacturer has
Hickory Manufacturing Company forecasts the following demand for a product in thousands of units over the next five years.
Currently the manufacturer has seven machines that operate on a twoshift eight hours each basis. Twenty days per year are available for scheduled maintenance of
equipment with no process output. Assume there are workdays in a year. Each manufactured good takes minutes to produce.
a What is the effective capacity of the factory? Round your answer down to the nearest whole number.
unitsyear
b Given the fiveyear 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
Extra capacity needed units
C Does the firm need to buy more machines? If so how many? When? If your answer is zero, enter Round your answers up to the nearest whole number.
Year
Additional machines needed
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