A company must decide the number of machines it should buy to satisfy its demand. The machine will operate 60 minutes per hour, 8 hours per day, 250 days per year. The company currently has 2 machine type 1, and 1 machine type 2.
Product demand and processing times for the equipment are:
Product Annual Demand PROCESSING TIME
PER UNIT (minutes)
Machine 1 Machine 2
001 12,000 4 6
002 10,000 9 9
003 18,000 5 3
a) The total processing time required by producing Product 1, 2, and 3 using machine type 1?
b) The total processing time required by producing Product 1, 2, and 3 using machine type 2?
c) What is the capacity cushion for machine type 1 and machine type 2?
d) How many machines of each type would be required to handle the demand?