Larry's Wickets, Inc. is producing two types of products: A and B. Both are produced at...

 

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Larry's Wickets, Inc. is producing two types of products: A and B. Both are produced at the same machining 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. Time Standard Demand Forecasts (000 units/yr) Product Processing Setup Batch Pessimistic Expected Optimistic Size A .30 1.0 200 100 120 150 B .25 2.0 100 190 210 230 The machines operate on two 8-hour shifts, 5 days per week, and 50 weeks per year. The manager wants to maintain a 20 percent capacity cushion. a. What is the minimum number of hours required of the machining equipment for the next year? b. How many hours of capacity can the company expect from each machine? c. What is the minimum number of machines needed (assuming no reliance on short-term options)? d. What is the maximum number of machines needed (assuming no reliance on short-term options)? Larry's Wickets, Inc. is producing two types of products: A and B. Both are produced at the same machining 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. Time Standard Demand Forecasts (000 units/yr) Product Processing Setup Batch Pessimistic Expected Optimistic Size A .30 1.0 200 100 120 150 B .25 2.0 100 190 210 230 The machines operate on two 8-hour shifts, 5 days per week, and 50 weeks per year. The manager wants to maintain a 20 percent capacity cushion. a. What is the minimum number of hours required of the machining equipment for the next year? b. How many hours of capacity can the company expect from each machine? c. What is the minimum number of machines needed (assuming no reliance on short-term options)? d. What is the maximum number of machines needed (assuming no reliance on short-term options)?