Question PRODUCTIVITY POTENTIAL Question 1 COSMOS is engaged in printing operations involving two major companies. The company reproduces many copies for each job. The time it takes to reproduce and bind each copy depends on the number of pages, among other factors. The company works 250 days a year, 8 hours a day. The company's management believes that a capacity cushion of 15% is ideal. Customer A Customer B Monthly demand (copies) Production time (hours/copy) Average copy size (pages per copy) Preparation time (hours) 2000 0.5 20 0.25 6000 0.7 30 0.40 The point: Based on the information given in the table below, calculate how many machines the company needs to have. Make a critical evaluation of your decision.
Question PRODUCTIVITY POTENTIAL Question 1 COSMOS is engaged in printing operations involving two major companies. The company reproduces many copies for each job. The time it takes to reproduce and bind each copy depends on the number of pages, among other factors. The company works 250 days a year, 8 hours a day. The company's management believes that a capacity cushion of 15% is ideal. Customer A Customer B Monthly demand (copies) Production time (hours/copy) Average copy size (pages per copy) Preparation time (hours) 2000 0.5 20 0.25 6000 0.7 30 0.40 The point: Based on the information given in the table below, calculate how many machines the company needs to have. Make a critical evaluation of your decision.
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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
Transcribed Image Text:Question PRODUCTIVITY POTENTIAL
Question 1
COSMOS is engaged in printing operations involving two major companies. The company
reproduces many copies for each job. The time it takes to reproduce and bind each copy
depends on the number of pages, among other factors. The company works 250 days a year,
8 hours a day. The company's management believes that a capacity cushion of 15% is ideal.
Customer A
Customer B
Monthly demand (copies)
Production time
(hours/copy)
Average copy size (pages
per copy)
Preparation time (hours)
2000
0.5
20
0.25
6000
0.7
30
0.40
The point:
Based on the information given in the table below, calculate how many machines the
company needs to have. Make a critical evaluation of your decision.
Expert Solution
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Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1: Calculate annual demand for each company:
VIEWStep 2: Calculate total annual production time per copy:
VIEWStep 3: Calculate total annual production time:
VIEWStep 4: Calculate total annual production time with 15% capacity cushion:
VIEWStep 5: Calculate machine hours per year:
VIEWStep 6: Calculate number of machines needed:
VIEWStep 7: Critical evaluation:
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