The Northern Manufacturing Company Is Producing Products a and B

The Northern Manufacturing Company is producing products A and B, using the same machine called MASAC27A. Demand forecasts for next year and other production- related information are provided in the following table.
$$\begin{array} { l | c | r } & \text { Product } A & \text { Product B } \\\hline \text { Demand forecast (units/yr) } & 4,000 & 12,000 \\\text { Batch size (units/batch) } & 80 & 150 \\\text { Standard processing time (hr/unit) } & 25 & 2 \\\text { Standard setup time (hr/batch } & 16 & 24\end{array}$$
The company works 250 days per year and operates 2 shifts each day, each shift covering 8 hours. If 25 percent of capacity cushion is maintained throughout the year, how many machines (MASAC27A) does the company need next year to meet the demand? Round your answer up to the next whole machine.

A) fewer than 11 machines
B) 11 machines
C) 12 machines
D) more than 12 machines

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free