The plant

Operates eight hours per day, five days per week, and $50$ weeks per year.

Management prefers a capacity cushion of $15$ percent. Two major types of

products are routed through the milling machine. The annual demand for

product A is $2500$ units and $1500$ units for product B$.$ The batch size for A is $50$

units and $30$ units for B$.$ The standard processing time for A is $0\mathrm{.}6$ hours$/$unit

and $0\mathrm{.}5$ hours$/$unit for B$.$ The standard setup time for product A is $3$ hours and

$6$ hours for product B$.$ How many new milling machines are required if Jones

does not resort to any short$-$term capacity options?

$$

A$)$ More than $4$ machines

B$)$ No new Machines

C$)3$ or $4$ machines

D$)1$ or $2$ new machines

Steps

$1.$ Determine current capacity

$2.$ Determine run time total

$3.$ Determine set up time

$4.$ Add Total run time and total set up time

$5.$ add cushion $15\%$

$6.$ Total