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Macon Controls produces three different types of control units used to protect industrial equipment from overheating. Each of these units must be processed by
Macon Controls produces three different types of control units used to protect industrial equipment from overheating. Each of these units must be processed by a machine that Macon considers to be their process bottleneck. The plant operates on two 8-hour shifts, 5 days per week, 52 weeks per year. The table below provides the time standards at the bottleneck, lot sizes, and demand forecasts for the three units. Because of demand uncertainties, the operations manager obtained three demand forecasts (pessimistic, expected, and optimistic). The manager believes that a 20 percent capacity cushion is best. Time Standard Pi Demand Forecast Processing Setup Component (hr/unit) (hr/lot) Lot Size (units/lot) Pessimistic Expected Optimistic 0.05 1.0 50 14,000 17,000 25,000 B 0.30 4.4 80 10,000 13,000 17.000 C 0.05 8.5 120 16,000 24,000 40,000 a. How many machines are required to meet minimum (Pessimistic) demand, expected demand, and maximum (Optimistic) demand? (Enter your responses rounded up to the next whole number.) Demand Forecast Capacity Requirement (M) Pessimistic Expected machines machines Optimistic machines
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