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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
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