Final answer:
To find how many additional machines are needed, calculate the total annual capacity, add a 25 percent cushion, then divide by the production per machine to find the total number of machines required. Subtract the current number of machines to get the additional machines needed, rounded up to a whole number.
Step-by-step explanation:
To determine how many machines should be purchased by Up, Up, and Away, a kite and wind sock producer, to meet the upcoming year's demand without resorting to short-term capacity solutions, we need to calculate the required capacity including the desired 25 percent capacity cushion. The shop operates two shifts per day at 8 hours per shift for 180 days a year. Assuming the maximum capacity is reached with the current four machines, we first calculate the total capacity with these conditions and then, we add the 25 percent cushion to determine the ideal total capacity. Finally, we ascertain the number of additional machines needed to meet this ideal capacity.
For example, if the full capacity without a cushion is 100 units, with a 25 percent cushion, the shop would aim for a capacity of 125 units. If each machine can produce 25 units, the company currently uses four machines to meet the initial 100 units. To meet the new goal of 125 units, however, the company would need five machines in total (since 125÷ 25 = 5), implying that one additional machine is required.
The number of additional machines required will be calculated based on similar logic specific to the actual production capabilities of the machines and the determined ideal capacity with the cushion.