Table 42
High Tech, Inc The Sawing Machines Operate on Two 8-Hour Shifts, 5 Days

Multiple Choice

Table 4.2
High Tech, Inc. is producing two types of products: A and B. Both are produced at the same sawing operation. Because of demand uncertainties, the operations manager obtained three demand forecasts (pessimistic, expected, and optimistic) . The demand forecasts, batch sizes (units/batch) , processing times (hr/unit) , and setup times (hr/batch) follow.

$\begin{array}{c}\quad\quad\quad\quad\quad\text { Time Standard } \quad\quad \quad\quad\quad\quad\quad \text { Demand Forecasts ( 000 units/yr) }\\\begin{array}{|l|l|l|l|l|l|l|}\hline \text { Product } & \text { Processing } & \text { Setup } & \text { Batch Size } & \text { Pessimistic } & \text { Expected } & \text { Optimistic } \\\hline \text { A } & .20 & 2.0 & 40 & 200 & 240 & 300 \\\text { B } & .15 & 3.0 & 50 & 160 & 180 & 200 \\\hline\end{array}\end{array}$
The sawing machines operate on two 8-hour shifts, 5 days per week, and 50 weeks per year. The manager wants to maintain a 10 percent capacity cushion.
-Using the information from Table 4.2,what is the minimum number of machines needed (assuming no reliance on short-term options) ?

A) less than or equal to 22
B) more than 22 but less than or equal to 25
C) more than 25 but less than or equal to 28
D) more than 28