Baker Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. Year12345Forecast Demand119132133137136 Currently the manufacturer has ten machines that operate on a two-shift (eight hours each) basis. Twenty days per year are available for scheduled maintenance of equipment. Assume there are 250 workdays in a year. Each manufactured good takes 32 minutes to produce.What is the effective capacity of the factory? Round your answer down to the nearest whole number and use this answer in subsequent computations. units/yearGiven the five-year forecast, how much extra capacity is needed each year? Round your answers to the nearest whole number.Year12345Extra capacity needed (units) Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number. Year12345Additional machines needed

Capacity planning is a strategic process used by business organisations to determine the optimal…

Answered: Baker Manufacturing Company forecasts…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Related questions

Question

Baker Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years.

Year	1	2	3	4	5
Forecast Demand	119	132	133	137	136

Currently the manufacturer has ten machines that operate on a two-shift (eight hours each) basis. Twenty days per year are available for scheduled maintenance of equipment. Assume there are 250 workdays in a year. Each manufactured good takes 32 minutes to produce.

What is the effective capacity of the factory? Round your answer down to the nearest whole number and use this answer in subsequent computations.

units/year
Given the five-year forecast, how much extra capacity is needed each year? Round your answers to the nearest whole number.

Year 1 2 3 4 5

Extra capacity needed (units)
Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number.

Year 1 2 3 4 5

Additional machines needed