Question
The Northern Manufacturing Company is producing products ABC and XYZ, using the same machine. Demand forecasts for next year and other production-related information are provided
The Northern Manufacturing Company is producing products ABC and XYZ, using the same machine. Demand forecasts for next year and other production-related information are provided in the following table.
| Product ABC | Product XYZ | |
| Demand forecast (units/yr) | 9,000 | 16,000 |
| Batch size (units/batch) | 150 | 300 |
| Processing time (hr/unit) | 3.5 | 5.0 |
| Setup time (hr/batch) | 20 | 30 |
The company works 300 days per year and operates 2 shifts each day, each shift covering 9 hours. If 20 percent of capacity cushion is maintained throughout the year, how many machines does the company need next year to meet the demand? You must show all work (formulas) to get credit for the question! (Round your answer up to the next whole machine.
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Project management the managerial process
Authors: Eric W Larson, Clifford F. Gray
5th edition
73403342, 978-0073403342
