Table 4.1
The Union Manufacturing Company is producing two types of products: A and B.
The demand forecasts, batch size, and time standards follow:
$$\begin{array} { l | c | c }
& \text { Product A } & \text { Product B } \
\hline \text { Demand forecast (units/yr) } & 1000 & 4000 \
\text { Batch size (units/batch) } & 20 & 10 \
\text { Processing time (hr/unit) } & 3.2 & 4.5 \
\text { Setup time (hr/batch } & 0 & 20
\end{array}$$
Both products are produced at the same operation called Mark I.
-Use the information in Table 4.1.The company works 250 days per year and operates two shifts,each covering 8 hours.If a 15 percent capacity cushion is maintained,how many hours of capacity can the company expect from each of its Mark I machines?
A) less than 3000
B) between 3000 and 3500
C) between 3501 and 4000
D) more than 4000

Question

Table 4.1
The Union Manufacturing Company is producing two types of products: A and B.
The demand forecasts, batch size, and time standards follow:
 $$\begin{array} { l | c | c } 
& \text { Product A } & \text { Product B } \
\hline \text { Demand forecast (units/yr) } & 1000 & 4000 \
\text { Batch size (units/batch) } & 20 & 10 \
\text { Processing time (hr/unit) } & 3.2 & 4.5 \
\text { Setup time (hr/batch } & 0 & 20
\end{array}$$ 
Both products are produced at the same operation called Mark I.
-Use the information in Table 4.1.The company works 250 days per year and operates two shifts,each covering 8 hours.If a 15 percent capacity cushion is maintained,how many hours of capacity can the company expect from each of its Mark I machines?
A) less than 3000
B) between 3000 and 3500
C) between 3501 and 4000
D) more than 4000

Quizplus · Accepted Answer

The total annual demand for product A is 1000 units, and the batch size is 20 units. So, the number of batches of product A per year is 1000/20 = 50 batches. The processing time for product A is 3.2 hours per unit, and the setup time is 0 hours per batch. So, the total processing time for product A per year is 50 batches * 3.2 hours per unit * 20 units per batch = 3200 hours.The total annual demand for product B is 4000 units, and the batch size is 10 units. So, the number of batches of product B per year is 4000/10 = 400 batches. The processing time for product B is 4.5 hours per unit, and the setup time is 20 hours per batch. So, the total processing time for product B per year is 400 batches * 4.5 hours per unit * 10 units per batch = 18000 hours.The total processing time for both products per year is 3200 hours + 18000 hours = 21200 hours. The company works 250 days per year and operates two shifts, each covering 8 hours. So, the total number of hours available per year is 250 days * 2 shifts * 8 hours per shift = 4000 hours.If a 15 percent capacity cushion is maintained, then the number of hours of capacity available per year is 4000 hours * (1 - 0.15) = 3400 hours.So, the company can expect between 3000 and 3500 hours of capacity from each of its Mark I machines.

Table 41 the Union Manufacturing Company Is Producing Two Types of of Products

Table 41
the Union Manufacturing Company Is Producing Two Types of of Products