Explain how many machines should be purchased

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Reference no: EM1375781

Q. Up, Up also away is a producer of kites also windsocks. Relevant data on a bottleneck operation in the shop for the upcoming fiscal yr are given in the subsequent table:

ITEM KITES WINDSOCKS
Demand forecast 30,000 units/yr 12,000 units/yr
Lot size 20 units 70 units
Standard processing time 0.3 hour/unit 1.0 hour/unit
Standard setup time 3.0 hrs/lot 4.0 hrs/lot

The shop works two shifts per day, eight hrs per shift, 200 days per yr. There presently are four machines also a 25percent capacity cushion is desired. Explain how many machines should be purchased to meet the upcoming yr's demand without resorting to any short-term capacity solutions (e.g., working overtime or reducing capacity cushion?)

Reference no: EM1375781

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