The Northern Manufacturing Company is producing products A and B, using the same machine called MASAC27A. Demand forecasts for next year and other production-related information are provided in the following table
Product A Product B
Demand forecast (units/yr) 4,000 12,000
Batch size (units/batch) 80 150
Processing time (hr/unit) 2.5 2.0
Setup time (hr/batch) 16 12
The company works 250 days per year and operates 2 shifts each day, each shift covering 8 hours. If 25 percent of capacity cushion is maintained throughout the year, how many machines (MASAC27A) does the company need next year to meet the demand? (Round your answer up to the next whole machine.)
A) fewer than 11 machines
B) 11 machines
C) 12 machines
D) more than 12 machines
C
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