Question: Capacity Planning Question Two products A and B share the same machine capacity. Current planning information is shown below: Product A Product B Demand forecast

Capacity Planning Question
Two products A and B share the same machine capacity. Current planning information is shown below:
Product A Product B
Demand forecast (units / year) 9800 4700
Batch size (units / batch) 200 100
Standard processing time (hours / unit) 1.2 1.1
Standard setup time (hours / batch) 2.0 3.0
The company works 300 days per year and operates 2 shifts each day, each shift covering 8 hours per day.
We desire a 15 percent capacity cushion
Using the information provided, how many machines are needed if we desire a 15% capacity cushion?

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