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

question 70

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, how many hours of capacity can the company expect from each of its sawing machines?

• A) less than 3500 hours
• B) more than 3500 hours but less than 3700 hours
• C) more than 3700 hours but less than 3900 hours
• D) more than 3900 hours

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Definitions:

Responsibility

The state or fact of having a duty to deal with something or of having control over someone, often involving accountability and ethical obligations.

Allegory of the Cave

The Allegory of the Cave is a theory put forward by Plato, concerning human perception and knowledge, suggesting that people are trapped in a world of illusions and need intellectual enlightenment to perceive reality.

Plato

An ancient Greek philosopher, a student of Socrates and teacher of Aristotle, whose writings are foundational in Western philosophy.

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