Table 5.2 High Tech, Inc. Is Producing Two Types of Products: a Products

question 30

Multiple Choice

Table 5.2
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.


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 5.2, 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

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Definitions:

Realistic Goals

Objectives that are achievable and relevant, taking into account current resources, limitations, and conditions.

Early Success

Achieving significant positive outcomes or milestones at an initial or early stage in a process or endeavor.

Cross-functional Teams

Teams composed of members from different departments or areas within an organization, working together on a common project or goal.

Communication Barriers

Obstacles that hinder the transfer and understanding of information between individuals or groups.