manufacturing company

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
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A toy manufacturing company works on three types of models, each of which could be produced on the same machine. The detailed information is shown in the table below. The company operates 200 days per year, with two 8-hour shifts, and requires a 15% capacity cushion for each machine to allow for preventive maintenance, breakdowns, and other unforeseen circumstances. Currently they have two machines. How many additional machines will be required to fulfill the predicted annual demand? You need to show the details for calculating demand, supply, and the number of machines needed to get full credit.

Job Type

Model A

Model B

Model C

Demand (units/year)

6000

4000

5000

Process time (hours/unit)

.8

.75

.25

Average lot size (unites/lot)

40

100

50

Set time (hours) per lot

1.0

1.5

0.5

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