Question: 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

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 40 percent. Two major types of products are routed through the milling machine. The annual demand is 3000 units for product A and 2000 units for product B. The batch size is 20 units for product A and 40 units for product B. The standard processing time is 0.5 hours/unit for product A and 0.8 hours/unit for product B. The standard setup time is 2 hours for product A and 8 hours for product B. How many additional milling machines should Stout buy if the company does not resort to any short-term capacity options?

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