Table 43
the North Bend Manufacturing Company Is Producing Two Types

Multiple Choice

Table 4.3
The North Bend Manufacturing Company is producing two types of products, A and B. Demand forecasts for next year and other production-related information are provided in the following table:
$$\begin{array} { l | c | c } & \text { Product A } & \text { Product B } \\\hline \text { Demand forecast (units/yr) } & 4,000 & 12,000 \\\text { Batch size (units/batch) } & 80 & 150 \\\text { Standard processing time (hr/unit) } & 2.5 & 2 \\\text { Standard setup time (hr/batch } & 18 & 24\end{array}$$
Both products A and B are produced at the same operation called MASAC27A.
-Use the information in Table 4.3 to help answer this question.Additionally,the company works 250 days every year and operates 2 shifts,each of which covers 8 hours.If a 25 percent capacity cushion is maintained,how many machines does the company need next year to fully cover the demand?

A) less than 13 machines
B) 13 machines
C) 14 machines
D) more than 14 machines