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A company's production facility, consisting of two identical machines, currently caters only to product A. The annual demand for the product is 4,000 units. Management has now decided to introduce another product, B, that uses the same facilities as that of product A. Product B has an annual demand of 2,000 units. In view of the uncertainties involved in producing two products, management desires to have an overall 10 percent capacity cushion. Given the following additional information, how many more machines are required?

Product Processing time per unit Setup time per batch Batch size
A 2.0 8 100
B 2.8 16 200

Sagot :

okpalawalter8

Mathematically, Four machines are needed and two machines are necessary

Option B is correct

How many more machines are required?

Question Parameters:

The annual demand for the product is 4000 units.

A. Product B has an annual demand of 2000 units.

(Assume 8 hours/shift, 2 shifts/day, 250 days/year, and that no overtime is allowed).

Generally, in light of the fact that the new product will require  the same facilities as that of product A and two machines was being used

We see that, Four machines are needed and two machines are necessary

Option B is correct

For more information on Machines https://brainly.com/question/10221970

Complete Question

A company's production facility, consisting of two identical machines, currently caters only to product A. The annual demand for the product is 4000 units. Management has now decided to introduce another product, B, which uses the same facilities as that of product A. Product B has an annual demand of 2000 units. In view of the uncertainties involved in producing two products, management desires to have an overall 10 percent capacity cushion. Given the following additional information, how many more machines are required? (Assume 8 hours/shift, 2 shifts/day, 250 days/year, and that no overtime is allowed).

  • No additional machines are necessary.
  • One additional machine is necessary.
  • Two additional machines are necessary.
  • More than two additional machines are necessary.
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