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

First, we need to calculate the total production time available in a year:

250 days/year * 2 shifts/day * 8 hours/shift = 4000 hours/year

Then, we need to calculate the total production time required for each product:
Product A: 2000 units * 1.2 hours/unit = 2400 hours 
Product B: 1500 units * 0.9 hours/unit = 1350 hours

So, the total production time required for both products is 3750 hours (2400 + 1350).

Now, let's add the 25% capacity cushion:

3750 hours / (1 - 0.25) = 5000 hours

This means that the company needs a total of 5000 hours of production time for both products, considering the capacity cushion.

Finally, we need to calculate how many machines are needed to achieve this production time, considering that each machine works for 2000 hours per year:

5000 hours / 2000 hours/machine = 2.5 machines

Since we need to round up, the answer is 3 machines. However, we need to remember that each machine can only produce one product at a time, so the company needs at least one machine for each product. Therefore, the company needs a minimum of 2 machines.

The closest choice to our answer is C, which states that the company needs 12 machines - this is more than our calculated answer (3 machines), but it is also a safe choice, since it considers having one machine for each product and adds an extra cushion. Thus, the best choice is C.

The Northern Manufacturing Company Is Producing Products a and B,using