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

question 91

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 maximum number of machines needed (assuming no reliance on short-term option) ?

• A) less than or equal to 25
• B) more than 25 but less than or equal to 28
• C) more than 28 but less than or equal to 31
• D) more than 31

---

Definitions:

Venn Diagram

A diagrammatic representation used in set theory and logic to depict the relationships between sets through overlapping circles or shapes.

Universal Proposition

A categorical proposition that makes an assertion about all members of the class designated by its subject term (A and E).

S are P

A simplified expression of a categorical proposition where "S" is the subject term and "P" is the predicate term, typically used to state a general relationship or attribute shared by all members of S.

Venn Diagram

A diagram that uses overlapping circles to illustrate the logical relationships between different sets of items or groups.