Macon Controls produces three different types of control units used to predict industrial equipment from overheating. Each of these units must be processed by a machine that Macon considers to be their process bottleneck. The plant operates on two 8-hour shifts, 5 days per week, 52 weeks per year. The table below provides the time standards at the bottleneck, lot sizes, and demand forecast for the three units. Because of demand uncertainties, the operations manager obtained three demand forecasts (pessimistic, expected, and opportunistic). The manager believes that a 30 percent capacity cushion is best.
|Componet||Time Standard||Lot Size (units/lot)||Demand Forecast|
|Processing (hr/unit)||Setup (hr/lot)||pessimistic||expected||optimistic|
How many machines are required to meet the minimum (Pessimistic) demand, expected demand, and maximum (optimistic) demand?
|Demand Forescast||Capacity Requirement (M)|