Table 41
the Union Manufacturing Company Is Producing Two Types of of Products

question 68

Multiple Choice

Table 4.1
The Union Manufacturing Company is producing two types of products: A and B.
The demand forecasts, batch size, and time standards follow:
$$\begin{array} { l | c | c } & \text { Product A } & \text { Product B } \\\hline \text { Demand forecast (units/yr) } & 1000 & 4000 \\\text { Batch size (units/batch) } & 20 & 10 \\\text { Processing time (hr/unit) } & 3.2 & 4.5 \\\text { Setup time (hr/batch } & 0 & 20\end{array}$$
Both products are produced at the same operation called Mark I.
-Use the information in Table 4.1.The company works 250 days per year and operates two shifts,each covering 8 hours.If a 15 percent capacity cushion is maintained,how many hours of capacity can the company expect from each of its Mark I machines?

• A) less than 3000
• B) between 3000 and 3500
• C) between 3501 and 4000
• D) more than 4000

---

Definitions:

Monetary Exchange

The process of trading different forms of money, currencies, or other financial instruments, typically reflecting the value of goods, services, or financial assets in financial transactions.

Double Coincidence

A situation in barter economies where two parties each possess a good or service that the other desires, enabling an exchange.

Likely

Likely refers to a high probability or chance of something happening or being the case, often used to forecast outcomes based on current trends or evidence.

Evolution Of Money

The historical development and transformation of money from traditional bartering systems to modern digital currencies.