A Company's Production Facility,consisting of Two Identical Machines,currently Caters Only

question 41

Multiple Choice

A company's production facility,consisting of two identical machines,currently caters only to product A.The annual demand for the product is 4000 units.Management has now decided to introduce another product,B,which uses the same facilities as that of product A.Product B has an annual demand of 2000 units.In view of the uncertainties involved in producing two products,management desires to have an overall 10 percent capacity cushion.Given the following additional information,how many more machines are required? (Assume 8 hours/shift,2 shifts/day,250 days/year,and that no overtime is allowed.)
$$\begin{array} { | c | c | c | c | } \hline \text { Product } & \begin{array} { c } \text { Processing } \\\text { Time per Unit } \\\text { (in hours) }\end{array} & \begin{array} { c } \text { Setup Time } \\\text { per Batch } \\\text { (in hours) }\end{array} & \begin{array} { c } \text { Batch Size } \\\text { (units) }\end{array} \\\hline \text { A } & 2.0 & 8 & 100 \\\text { B } & 2.8 & 16 & 200 \\\hline\end{array}$$

• A) No additional machines are necessary.
• B) One additional machine is necessary.
• C) Two additional machines are necessary.
• D) More than two additional machines are necessary.

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Definitions:

External Behavior

Actions or reactions exhibited by an individual that are observable by others, reflecting a response to the surrounding environment.

Workforce

The total number of a country's or organization's employed individuals, including both full-time and part-time workers.

Organizational Culture Inventory (OCI)

A survey instrument designed to assess the culture of an organization by measuring the behaviors and norms that are encouraged or penalized.

Technical/Human Orientation

A perspective or approach that emphasizes either the technical or human aspects in professional settings or disciplines.