Baker Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next

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Baker Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years.

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Currently the manufacturer has eight machines that operate on a two-shift (eight hours each) basis. Twenty days per year are available for scheduled maintenance of equipment. Assume there are 250 workdays in a year. Each manufactured good takes 26 minutes to produce.


a. What is the effective capacity of the factory? 

b. Given the five-year forecast, how much extra capacity is needed each year?

c. Does the firm need to buy more machines? If so, how many? When?

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Related Book For  book-img-for-question

Operations And Supply Chain Management

ISBN: 9780357131695

2nd Edition

Authors: David A. Collier, James R. Evans

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