Question: Operates eight hours per day, five days per week, and 5 0 weeks per year. Management prefers a capacity cushion of 1 5 percent. Two

Operates eight hours per day, five days per week, and 50 weeks per year.
Management prefers a capacity cushion of 15 percent. Two major types of
products are routed through the milling machine. The annual demand for
product A is 2500 units and 1500 units for product B. The batch size for A is 50
units and 30 units for B. The standard processing time for A is 0.6 hours/unit
and 0.5 hours/unit for B. The standard setup time for product A is 3 hours and
6 hours for product B. How many new milling machines are required if Jones
does not resort to any short-term capacity options?

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