The Union Manufacturing Company is producing two types of products: A and B. The demand forecasts, batch size, and time standards follow in table 2: Table No 2 Product A Product B Demand forecast (units/yr) 1,000 4,000 Batch size (units/batch) 20 10 Processing time (hr/unit) 3.2 4.5 Setup time (hr/batch) 10 20
The Union Manufacturing Company is producing two types of products: A and B. The demand forecasts, batch size, and time standards follow in table 2:
Table No 2
|
|
Product A |
Product B |
|
Demand forecast (units/yr) |
1,000 |
4,000 |
|
Batch size (units/batch) |
20 |
10 |
|
Processing time (hr/unit) |
3.2 |
4.5 |
|
Setup time (hr/batch) |
10 |
20 |
Both products are produced on the same machine, called Mark I.
i) What is the total number of hours required of Mark I equipment for the next year?
ii) The company works 250 days per year and operates two shifts, each covering 8 hours. If a 15 percent capacity cushion is maintained, how many hours of capacity can the company expect from each of its Mark I machines?
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