Macon Controls produces three different types of control units used to protect industrial equipment from overheating.
a. How many machines are required to meet minimum (Pessimistic) demand, expected demand, maximum (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?