Budgeted demand requires adding additional lines

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Reference no: EM131766727

Five existing assembly lines have the flexibility to handle two products, but a huge jump in budgeted demand requires adding additional lines.

Operations are scheduled for 300 days/year with two shifts of 10 hours each per day. In order to ensure they can react to rush or large orders, a 12% capacity cushion is desired. How many additional assembly lines are needed to deal with the following forecast:

Model A Model B

Annual Demand 40,000 60,000

Set-up Time/ Batch 4 hrs 6 hrs

Run Time per unit 45 min 30 min

Batch Size 2,000 3,000

Reference no: EM131766727

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