Question: 3. Given the five-year forecast, how much extra capacity is needed each year? Year Forecast Capacity Capacity shortage 1 2 114,000 129,000 3 131,000 4

3. Given the five-year forecast, how much extra capacity is needed each year? Year Forecast Capacity Capacity shortage 1 2 114,000 129,000 3 131,000 4 134,000 5 133,000 4. Does the firm need to buy more machines? If so, how many? When? The purpose of this assignment is to calculate theoretical and effective capacity in a manufacturing environment. 1. ABC Company "order fulfillment process normally operates two shifts a day, six days per week. Under ideal conditions, 380 orders can be processed per shift What is the weekly theoretical capacity? 2. Currently a 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. What is the effective capacity of the factory

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