Assembly lines have the flexibility to handle two products

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Four existing assembly lines have the flexibility to handle two products, but a huge jump in budgeted demand requires adding additional lines.

Operations are scheduled for 350 days/year with two shifts of 10 hours each per day. In order to ensure they can react to rush or large orders, a 15% capacity cushion is desired. How many additional assembly lines are needed to deal with the following forecast:

Model A. Model B

   Annual Demand     40,000       60,000

   Set-up Time/ Batch   4 hrs          6 hrs

   Run Time per unit   30 min         1 hr

   Batch Size                2,000         3,000

Reference no: EM131766760

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