Table 42
High Tech, Inc The Sawing Machines Operate on Two 8-Hour Shifts, 5 Days

question 120

Multiple Choice

Table 4.2
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.

$\begin{array}{c}\quad\quad\quad\quad\quad\text { Time Standard } \quad\quad \quad\quad\quad\quad\quad \text { Demand Forecasts ( 000 units/yr) }\\\begin{array}{|l|l|l|l|l|l|l|}\hline \text { Product } & \text { Processing } & \text { Setup } & \text { Batch Size } & \text { Pessimistic } & \text { Expected } & \text { Optimistic } \\\hline \text { A } & .20 & 2.0 & 40 & 200 & 240 & 300 \\\text { B } & .15 & 3.0 & 50 & 160 & 180 & 200 \\\hline\end{array}\end{array}$
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 4.2,what is the minimum number of machines needed (assuming no reliance on short-term options) ?

• A) less than or equal to 22
• B) more than 22 but less than or equal to 25
• C) more than 25 but less than or equal to 28
• D) more than 28

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Definitions:

Product Platform

A set of common designs, components, and technologies used as a base upon which various products can be developed and manufactured.

Executive Summary

A concise overview of a business plan or document, highlighting its main points, goals, and recommendations, meant to give readers a quick preview.

Marketing Plan

A comprehensive document that outlines a company's overall marketing efforts, including strategies, objectives, and activities to achieve them.

Corporate Mission Statement

A concise declaration of a company’s core purpose and focus that normally remains unchanged over time, guiding its strategic decisions and organizational culture.