Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 two-shift (eight hours each) basis. Twenty 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 25 minutes to produce. a. What is the effective capacity of the factory? b. Given the five-year forecast, how much extra capacity is needed each year? Year/demand:1= 60, 2 = 79, 3 = 81, 4 =84, 5 = 84 c. Does the firm need to buy more machines? If so, how many? When
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started