Question $5$

P$2$c$.$ Vance Refrigeration, Inc. makes industrial sized

refrigerators for grocery retailers. They produce three

different types of refrigerating units, which must all be

produced by a machine that is considered the process

bottleneck. The plant operates on $28-$hour shifts, $5$

days per week, $52$ weeks per year. The table below

provides the standards at the bottleneck, lot sizes, and

demand forecasts for the three units. Due to

uncertainty in demand, the operations manager has

obtained three different forecasting scenarios

$($pessimistic$,$ expected, optimistic$).$ The manager

believes a $15\%$ capacity cushion is best.

How many machines are required to meet

optimistic demand? Use the table below to find time

required for production.