Question: 4. A copy center in a office prepares bound copies of reports for 2 clients. The center makes multiple copies of each report (lot size).

4. A copy center in a office prepares bound

4. A copy center in a office prepares bound copies of reports for 2 clients. The center makes multiple copies of each report (lot size). The processing time to run, collate and bind each copy depends on the number of pages in each report. The center operates 250 days per year with one 8 hour shift per day. To account for the variability the management believes that they need a capacity buffer of about 15% beyond what may be built into the time standard. It currently has 3 copy machines at the center. In planning for the future they have collected the following information shown in the table below. How many machines should they have at the copy center to satisfy this future demand? Client X 2,000 Client Y 6,000 Item Annual Forecasted Demand (copies) Standard processing time (hour/copy) Average lot size (copies/report) Standard Set up time (hours) 0.5 0.7 20 30 0.25 0.40

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