Villanova production facility

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Reference no: EM132300179

Villanova's production facility, consisting of two identical machines, currently caters only to product A. The annual demand for the product is 4,000 units. Management has now decided to introduce another product, B, that uses the same facilities as that of product A. Product B has an annual demand of 2,000 units. In view of the uncertainties involved in producing two products, management desires to have an overall 10 percent capacity cushion. Given the following additional information, how many more machines are required? Assume 8 hours/shift, 2 shifts/day, 250 days/year, and that no overtime is allowed. Product A: Processing time per unit: 2.0 hours/unit Setup time per batch: 8.0 hours/setup Batch size: 100 units/batch Product B: Processing time per unit: 2.8 hours/unit Setup time per batch: 16.0 hours/setup Batch size: 200 units/batch Question 5 options: a) More than two additional machines are necessary b) No additional machines are necessary c) Two additional machines are necessary d) One additional machine is necessary

Reference no: EM132300179

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