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

question 97

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, what is the minimum total number of hours required of sawing equipment for the next year?

• A) less than 85,000 hours
• B) more than 85,000 but less than 95,000
• C) more than 95,000 but less than 105,000
• D) more than 105,000 hours

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