Question: A production facility faces a rather stable demand and has a fixed capacity, which is based on the number of IGN-99 machines. The average demand
A production facility faces a rather stable demand and has a fixed capacity, which is based on the number of IGN-99 machines. The average demand is 100 units per week, and each of the four IGN-99 machines can deliver 99 units per week (hence the name). These IGN-99 machines are rather expensive to operate. Which statement is most correct?
A. Given the current low utilization, they should sell (or at least not run) two of these IGN-99 machines.
B. The production facility should replace the four IGN-99 machines with four newer IGN-100 machines.
C. This situation is fine since the IGN-99 machines are not the bottleneck.
D. There is a problem since the demand is 100 units, and a IGN-99 machine can only deliver 99 units.
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