Both of these products are produced at the same workstation, called the Automatic Lathe. Currently, the company has 12 automatic lathes, and financial constraints prevent any expansion for the next year. It works 250 days per year with two 8minus-hour shifts and desires a 25 percent capacity cushion. Which one of the following alternatives will allow next year's demand to be fully covered?
The Southeast Manufacturing Company is producing two types of products: A and B. Demand forecasts for next year and other production minus-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)
|
18
|
24
|