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The single milling machine at Stout Manufacturing was severely overloaded last year. The plant operates eight hours per day, five days per week, and 50 weeks per year. Management prefers a capacity cushion of 15 percent. Two major types of products are routed through the milling machine. The annual demand for product A is 3000 units and 2000 units for product B. The batch size for A is 20 units and 40 units for B. The standard processing time for A is 0.5 hours/unit and 0.8 for B. The standard setup time for product A is 2 hours and 8 hours for product B. How many new milling machines are required if Stout does not resort to any short-term capacity options?
A) No new machines
B) 3 or 4 new machines
C) 1 or 2 new machines
D) More than 4 new machines
Textbook 
Operations Management: Processes and Supply Chains

Operations Management: Processes and Supply Chains


Edition: 11th
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GL700WingGL700Wing
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silverbullet Author
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8 years ago
thanks for being so helpful
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