Baker Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years. Year 1 2 3 4 5 Forecast Demand 119 132 133 137 136 Currently the manufacturer has ten machines that operate on a two-shift (eight hours each) basis. Twenty days per year are available for scheduled maintenance of equipment. Assume there are 250 workdays in a year. Each manufactured good takes 32 minutes to produce. What is the effective capacity of the factory? Round your answer down to the nearest whole number and use this answer in subsequent computations. units/year Given the five-year forecast, how much extra capacity is needed each year? Round your answers to the nearest whole number. Year 1 2 3 4 5 Extra capacity needed (units) Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number. Year 1 2 3 4 5 Additional machines needed

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter4: Linear Programming Models
Section4.8: Data Envelopment Analysis (dea)
Problem 42P
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Baker Manufacturing Company forecasts the following demand for a product (in thousands of units) over the next five years.

 

Year 1 2 3 4 5
Forecast Demand 119 132 133 137 136

 

Currently the manufacturer has ten machines that operate on a two-shift (eight hours each) basis. Twenty days per year are available for scheduled maintenance of equipment. Assume there are 250 workdays in a year. Each manufactured good takes 32 minutes to produce.

  1. What is the effective capacity of the factory? Round your answer down to the nearest whole number and use this answer in subsequent computations.

     units/year

  2. Given the five-year forecast, how much extra capacity is needed each year? Round your answers to the nearest whole number.

    Year 1 2 3 4 5
    Extra capacity needed (units)          
  3. Does the firm need to buy more machines? If so, how many? When? If your answer is zero, enter "0". Round your answers up to the nearest whole number.

     

    Year 1 2 3 4 5
    Additional machines needed          
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ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,