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Macon Controls produces three different types of control units used to protect industrial equipment from overheating. Each of these units must be processed by a machine that Macon considers to be their process bottleneck. The plant operates on two 8-hour shifts, 5 days per week, 52 weeks per year. The table below provides the time standards at the bottleneck, lot sizes, and demand forecasts for the three units. Because of demand uncertainties, the operations manager obtained three demand forecasts (pessimistic, expected, and optimistic). The manager believes that a 25 percent capacity cushion is best. Pi Demand Forecast Component A B C Time Standard Processing (hr/unit) 0.04 0.20 0.05 Setup (hr/lot) 1.0 4.4 8.5 Lot Size (units/lot) 50 75 100 Demand Forecast Pessimistic 16,000 10,000 18,000 a. How many machines are required to meet minimum (Pessimistic) demand, expected demand, and maximum (Optimistic) demand? (Enter your responses rounded up to the next whole number.) Pessimistic Expected Optimistic Capacity Requirement (M) Expected Optimistic 17,000 27,000 12,000 17,000 24,000 35,000 machines machines machines

Macon Controls produces three different types of control units used to protect industrial equipment from overheating. Each of these units must be processed by a machine that Macon considers to be their process bottleneck. The plant operates on two 8-hour shifts, 5 days per week, 52 weeks per year. The table below provides the time standards at the bottleneck, lot sizes, and demand forecasts for the three units. Because of demand uncertainties, the operations manager obtained three demand forecasts (pessimistic, expected, and optimistic). The manager believes that a 25 percent capacity cushion is best. Pi Demand Forecast Component A B C Time Standard Processing (hr/unit) 0.04 0.20 0.05 Setup (hr/lot) 1.0 4.4 8.5 Lot Size (units/lot) 50 75 100 Demand Forecast Pessimistic 16,000 10,000 18,000 a. How many machines are required to meet minimum (Pessimistic) demand, expected demand, and maximum (Optimistic) demand? (Enter your responses rounded up to the next whole number.) Pessimistic Expected Optimistic Capacity Requirement (M) Expected Optimistic 17,000 27,000 12,000 17,000 24,000 35,000 machines machines machines

Practical Management Science
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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Macon Controls produces three different types of control units used to protect industrial equipment from overheating. Each of these units must be processed by a machine that Macon considers to be their process bottleneck. The plant operates on two 8-hour shifts, 5 days per week, 52 weeks per year. The table below provides the time standards at the bottleneck, lot sizes, and demand forecasts for the three units. Because of demand uncertainties, the operations manager obtained three demand forecasts (pessimistic, expected, and optimistic). The manager believes that a 25 percent capacity cushion is best. D Demand Forecast Component A B C Time Standard Processing Setup (hr/unit) (hr/lot) 0.04 1.0 0.20 4.4 0.05 8.5 Lot Size (units/lot) 50 75 100 Demand Forecast Pessimistic Expected Optimistic Pessimistic 16,000 10,000 18,000 a. How many machines are required to meet minimum (Pessimistic) demand, expected demand, and maximum (Optimistic) demand? (Enter your responses rounded up to the next whole number.) Capacity Requirement (M) Expected 17,000 12,000 24,000 machines machines machines Optimistic 27,000 17,000 35,000
Transcribed Image Text:Macon Controls produces three different types of control units used to protect industrial equipment from overheating. Each of these units must be processed by a machine that Macon considers to be their process bottleneck. The plant operates on two 8-hour shifts, 5 days per week, 52 weeks per year. The table below provides the time standards at the bottleneck, lot sizes, and demand forecasts for the three units. Because of demand uncertainties, the operations manager obtained three demand forecasts (pessimistic, expected, and optimistic). The manager believes that a 25 percent capacity cushion is best. D Demand Forecast Component A B C Time Standard Processing Setup (hr/unit) (hr/lot) 0.04 1.0 0.20 4.4 0.05 8.5 Lot Size (units/lot) 50 75 100 Demand Forecast Pessimistic Expected Optimistic Pessimistic 16,000 10,000 18,000 a. How many machines are required to meet minimum (Pessimistic) demand, expected demand, and maximum (Optimistic) demand? (Enter your responses rounded up to the next whole number.) Capacity Requirement (M) Expected 17,000 12,000 24,000 machines machines machines Optimistic 27,000 17,000 35,000
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