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The King Company is producing two types of products: A and B. Both products are produced on the same machining operation. The machines operate on two 8-hour shifts, 5 days per week, and 50 weeks per year. The manager wants to maintain a 15 percent capacity cushion. The demand forecast, batch sizes, processing times, and setup times are given in the below table. Determine number of machines needed.

Product A Product B

Demand forecast (units/yr) 140,000 180,000

Batch size (units/batch) 50 40

Processing time (hr/unit) 0.2 0.15

Setup time (hr/batch) 0.8 1.2

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M9353144

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