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:

Both products are produced on the same machine, 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) fewer than 3,000
B) between 3,000 and 3,500
C) between 3,501 and 4,000
D) more than 4,000

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:
  
Both products are produced on the same machine, 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) fewer than 3,000 
B) between 3,000 and 3,500 
C) between 3,501 and 4,000 
D) more than 4,000

Quizplus · Accepted Answer

The company operates 250 days per year with two 8-hour shifts, totaling 16 hours per day. Without the capacity cushion, the total hours per year would be 250 days * 16 hours/day = 4,000 hours. A 15 percent capacity cushion means only 85% of this capacity is used: 4,000 hours * 0.85 = 3,400 hours, which falls between 3,000 and 3,500 hours.

Table 4.1 The Union Manufacturing Company Is Producing Two Types of Products