Table 6.2 High Tech,Inc.is Producing Two Types of Products: a and B.Both

question 78

Multiple Choice

Table 6.2
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 6.2,how many hours of capacity can the company expect from each of its sawing machines?

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