The Northern Manufacturing Company is producing products A and B, using the same machine called MASAC27A. Demand forecasts for next year and other production-related information are provided in the following table.
The company works 250 days per year and operates 2 shifts each day, each shift covering 8 hours. If 25 percent of capacity cushion is maintained throughout the year, how many machines (MASAC27A) does the company need next year to meet the demand? (Round your answer up to the next whole machine.)

Question

The Northern Manufacturing Company is producing products A and B, using the same machine called MASAC27A. Demand forecasts for next year and other production-related information are provided in the following table. 
The company works 250 days per year and operates 2 shifts each day, each shift covering 8 hours. If 25 percent of capacity cushion is maintained throughout the year, how many machines (MASAC27A) does the company need next year to meet the demand? (Round your answer up to the next whole machine.)

Quizplus · Accepted Answer

Step 1: Calculate the demand per hour for each product.
Product A = (1200/250)/(2*8) = 0.375 units/hour
Product B = (1800/250)/(2*8) = 0.5625 units/hour

Step 2: Calculate the maximum capacity per machine for each product.
Product A = (480*0.75)/(1.2*2*8) = 12.5 units/day
Product B = (720*0.75)/(1.8*2*8) = 15.625 units/day

Step 3: Calculate the number of machines needed for each product.
Product A = 1200/12.5 = 96 machines
Product B = 1800/15.625 = 115.2 machines

Step 4: Round up the number of machines to the nearest whole number.
Product A = 96 machines
Product B = 116 machines

Step 5: The company needs 116 machines to produce Product B, which is greater than the number of machines needed for Product A. Therefore, the company needs at least 116 machines to meet the demand for both products. However, the company also needs to take into account the 25% capacity cushion, which increases the number of machines needed to produce both products.

Step 6: Calculate the number of machines needed with the 25% capacity cushion.
(116*1.25) = 145 machines

Step 7: Since the number of machines needed is not a whole number, round up to the nearest whole machine.
145 machines rounded up = 12 machines

Therefore, the company needs 12 machines to meet the demand for both products with a 25% capacity cushion. The answer is C) 12 machines.

The Northern Manufacturing Company Is Producing Products a and B