Question: Please note this is 1 full question. There are multiple parts to be answered, even the small boxes under (b.) and (c.) Baker Manufacturing Company

Please note this is 1 full question. There are multiple parts to be answered, even the small boxes under (b.) and (c.)

Baker Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years.

Year 1 2 3 4 5
Forecast Demand 130 145 146 150 148

Currently the manufacturer has nine 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 22 minutes to produce.

  1. What is the effective capacity of the factory? Round your answer down to the nearest whole number and use this answer in subsequent computations.

    _____units/year

  2. Given the five-year forecast, how much extra capacity is needed each year? Round your answers to the nearest whole number.

    Year 1 2 3 4 5
    Extra capacity needed (units)
  3. Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number.

    Year 1 2 3 4 5
    Additional machines needed

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!