Concept explainers
Up, Up, and Away is a producer of kites and wind socks. Relevant data on a bottleneck operation in the shop for the upcoming fiscal year are given in the following table:
The shop works two shifts per day, 8 hours per shift, 200 days per year. Currently, the company operates four machines, and desires a 25 percent capacity cushion. How many machines should be purchased to meet the upcoming year’s demand without resorting to any short-term capacity solutions?
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