Table 42
High Tech, Inc The Sawing Machines Operate on Two 8-Hour Shifts, 5 Days

question 15

Multiple Choice

Table 4.2
High Tech, Inc. is producing two types of products: A and B. Both are produced at the same sawing operation. Because of demand uncertainties, the operations manager obtained three demand forecasts (pessimistic, expected, and optimistic) . The demand forecasts, batch sizes (units/batch) , processing times (hr/unit) , and setup times (hr/batch) follow.

$\begin{array}{c}\quad\quad\quad\quad\quad\text { Time Standard } \quad\quad \quad\quad\quad\quad\quad \text { Demand Forecasts ( 000 units/yr) }\\\begin{array}{|l|l|l|l|l|l|l|}\hline \text { Product } & \text { Processing } & \text { Setup } & \text { Batch Size } & \text { Pessimistic } & \text { Expected } & \text { Optimistic } \\\hline \text { A } & .20 & 2.0 & 40 & 200 & 240 & 300 \\\text { B } & .15 & 3.0 & 50 & 160 & 180 & 200 \\\hline\end{array}\end{array}$
The sawing machines operate on two 8-hour shifts, 5 days per week, and 50 weeks per year. The manager wants to maintain a 10 percent capacity cushion.
-Using the information from Table 4.2,if the operation currently has 18 machines and the manager is willing to expand capacity by 20 percent through short-term options,what is the capacity gap (in terms of number of machines) if you assume the optimistic demand forecasts?

• A) less than or equal to 10
• B) more than 10 but less than or equal to 12
• C) more than 12 but less than or equal to 14
• D) more than 14

---

Definitions:

Neural Impulses

Electrical signals that travel along neurons, conveying information throughout the nervous system.

Axon

A thin, elongated extension of a neuron that usually transmits electrical signals from the neuron's cell body outward.

Dendrite

The branched projections of a neuron that act to conduct the electrochemical stimulation received from other neural cells to the body, or soma, of the neuron from which the dendrites project.

Myelin Sheath

An insulating layer around nerves, made of protein and fatty substances, which helps increase the speed at which electrical impulses propagate.