The following table shows capacity requirements data for making tabletops. Which of the following is TRUE?
A)Overtime is needed in day 1.
B)Capacity exactly meets demand in day 5.
C)All of the excess demand in days 4 and 5 can be shifted to day 3.
D)New machines are needed.

Question

The following table shows capacity requirements data for making tabletops.  Which of the following is TRUE?
A)Overtime is needed in day 1. 
B)Capacity exactly meets demand in day 5. 
C)All of the excess demand in days 4 and 5 can be shifted to day 3. 
D)New machines are needed.

Quizplus · Accepted Answer

In Day 4 and 5, there is an excess demand of 80 and 60 units, respectively. The total excess demand is 140 units. On Day 3, the capacity is 260, and the demand is only 200. Therefore, the excess capacity on Day 3 is 60 units. Hence, all the excess demand in Day 4 and 5 (140 units) can be shifted to Day 3, along with the excess capacity of 60 units. This way, Day 3 can produce 300 units (260 + 140 - 60), which is enough to meet the total demand for tabletops. No overtime, new machines or capacity increase is needed.

The Following Table Shows Capacity Requirements Data for Making Tabletops