Question: TABLE 5.2 CAPACITY INFORMATION FOR MACON CONTROLS TIME STANDARD DEMAND FORECAST Component Processing (hr/unit) Setup (hr/lot) Lot Size (units/lot) Pessimistic Expected Optimistic A 0.05

Processing (hr/unit) Setup (hr/lot) Lot Size (units/lot) Pessimistic Expected Optimistic A 0.05

TABLE 5.2 CAPACITY INFORMATION FOR MACON CONTROLS TIME STANDARD DEMAND FORECAST Component Processing (hr/unit) Setup (hr/lot) Lot Size (units/lot) Pessimistic Expected Optimistic A 0.05 1.0 60 15,000 18,000 25,000 B 0.20 4.5 80 10,000 13,000 17,000 C 0.05 8.2 120 17,000 25,000 40,000 a. How many machines are required to meet minimum (pessimistic) demand, expected demand, and maxi- mum (optimistic) demand? b. How many machines are required if the operations manager decides to double lot sizes? c. If the operations manager has three machines and believes that the plant can reduce setup time by 20 percent through process improvement initiatives, does that plant have adequate capacity to meet all demand scenarios without increasing lot sizes?

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