Production/Operation Management Quiz 4

1273 WordsFeb 9, 20136 Pages
Question 1 3 out of 3 points | | | |[pic] |If a system is well balanced, which one of the following changes usually calls for a larger-capacity cushion? | | |Answer | | |Selected Answer: | | |[pic] Requests for fast delivery times | | |Correct Answer:…show more content…
The annual | | |demand for the product is 4000 units. Management has now decided to introduce another product, B, which uses the same | | |facilities as that of product A. Product B has an annual demand of 2000 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). | |

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