Hickory Manufacturing Company forecasts the following demand for a product (inthousands of units) over the next five years.YearForecast Demand1602793814584 84Currently the manufacturer has seven machines that operate on a two-shift (eighthours each) basis. Twenty days per year are available for scheduled maintenance ofequipment with no process output. Assume there are 250 workdays in a year. Eachmanufactured good takes 25 minutes to produce.a. What is the effective capacity of the factory?b. Given the five-year forecast, how much extra capacity is needed each year?c. Does the firm need to buy more machines? If so, how many? When?

Answered: Hickory 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...

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