Does the lab need to purchase additional machine

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A science lab uses a analysis machine for two types of tests. The lab is open from 8 am to 5 pm, five days per week, for 50 weeks per year.  Test A takes one hour to perform, the tests are run in batches of 40, and the machine must be set up beforehand which takes 15 minutes. Test B takes 45 minutes to perform, the setup time is 30 minutes, and tests are run in batches of 30. The forecast demand for the coming year is 5,000 Type A tests and 4,000 Type B tests. Lab management requires a 15% capacity cushion to accommodate rush orders.

They currently own two analysis machines. Does the lab need to purchase an additional machine? Use quantitative analysis to justify your recommendation.

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Reference no: EM132306260

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