OHickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. O Year 1 2 3 4 5 Forecast demand 58 83 85 89 89 Currently the manufacturer has nine machines that operate on a two-shift (eight hours each) basis. Thirty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 25 minutes to produce. a. What is the effective capacity of the factory? Round your answer down to the nearest whole number. units/year b. Given the five-year forecast, how much extra capacity is needed each year? Use a minus sign to enter an answer, if there is excess capacity. Round your answers to the nearest whole number. 1 Year 2 3 4 5 Extra capacity needed (units) C. 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. 1 Year 2 3 4 5 Additional machines needed Icon Key

OHickory Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. O Year 1 2 3 4 5 Forecast demand 58 83 85 89 89 Currently the manufacturer has nine machines that operate on a two-shift (eight hours each) basis. Thirty days per year are available for scheduled maintenance of equipment with no process output. Assume there are 250 workdays in a year. Each manufactured good takes 25 minutes to produce. a. What is the effective capacity of the factory? Round your answer down to the nearest whole number. units/year b. Given the five-year forecast, how much extra capacity is needed each year? Use a minus sign to enter an answer, if there is excess capacity. Round your answers to the nearest whole number. 1 Year 2 3 4 5 Extra capacity needed (units) C. 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. 1 Year 2 3 4 5 Additional machines needed Icon Key

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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