The Union Manufacturing Company Is Producing Two Types of Products

Essay

The Union Manufacturing Company is producing two types of products: A and B.The demand forecasts,batch size,and time standards for the Mark I operation follow:
$$\begin{array} { l | c | c } & \text { Product A } & \text { Product B } \\\hline \text { Demand forecast (units/yr) } & 1,000 & 4,000 \\\text { Batd size (units/bat d) } & 20 & 10 \\\text { Processing time (hr/unit) } & 3.2 & 4.5 \\\text { Setup time (hr/batch } & 10 & 20\end{array}$$
The company works 250 days per year and operates 2 shifts,each covering 8 hours.If a 20 percent capacity cushion is maintained,how many new Mark I machines are required if Union does not resort to any short-term capacity options?