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Questions 11-13 uses the following information. facturing Company is producing t

ID: 326111 • Letter: Q

Question

Questions 11-13 uses the following information. facturing Company is producing two types of products: A and B. The demand forecasts, batch size, and time standards follow roduct AProduct E 4,000 Demand forecast (unitsr1,000 atch size (units/batch) rocessing time (hrhunit) 3.2 Setup time (hr/batch) 20 4.5 Both products are produced on the same machine, called Mark I 11) Using Table 4.1, what is the total number of hours required of Mark I equipment for the next year? A) fewer than 29,000 hours B) between 29,000 and 30,000 hours C) between 30,000 and 31,000 hours D) more than 31,000 hours 12) Use the information in Table 4.1. The company works 250 days per year and operates two shifts, each covering 8 hours. If a 15 percent capacity cushion is maintained, how many hours of capacity can the company expect from each of its Mark I machines? A) fewer than 3000 B) between 3000 and 3500 C) between 3501 and 4000 D) more than 4000 13) Use the information in Table 4.1. How many Mark I machines are required to produce Union Manufacturing's for the year's production? A) fewer than 4 machines B) more than 4 but fewer than or equal to 6 machines C) more than 6 but fewer than or equal to 8 machines D) more than 8 machines

Explanation / Answer

Q11) Product A - TIme required For 1000 units

NO.of batches= 1000/20 = 50

Process time = 3.2 hr * 1000 units= 3200 hrs

Setup time= 10hr * 50 batches= 500 hrs

Total time for Product A= 3200+500= 3700 hrs

Time required for prduct B (4000 units):

NO.of batches= 4000/10 = 400

Process time = 4.5 hr * 4000 units= 18000 hrs

Setup time= 20hr * 400 batches= 8000 hrs

Total time for Product A= 18000+8000= 26000 hrs

Total time required for Product A and B = 3700hr+ 26000hrs=29700 HRS

Hence the Ans. is option B.

Q12.

Days of working250

Hours of working in a day 8hrs* 2 shifts= 16 hrs.

Total working hours in a year= 250* 16= 4000 hrs..

Hence the ans. is option C.

Q13 . no. of Mark1 machines required are:

As ans. in Q11. The total required time for producing the total ouput is 29700 hrs.

A mark1 machine can function for 4000 hrs in a year ( ref. Q12)

So no. of machines required are = 29700/4000 = 7.4 ( approx. 8 machines)

Hence the ans. is option C .