Question

Johnny Thompson's poster company works on 3 types of printing jobs, each of which could be produced on the same model machine. The predicted annual demands and typical order sizes are shown in the table below. The company has 2000 production hours available each year and requires a 10% capacity cushion to allow for preventive maintenance, breakdowns, and other unforeseen circumstances. How many printing machines must they have under these circumstances? Show all of your work.

Job Type	Job A	Job B	Job C
Demand	8000	4000	5000
Process time per unit	.8	.75	.25
Average order size	40	100	50
Setup time (hours)	1	.75	.5

Answer 1

Total time required for all jobs = 6600+3030+1300 = 10930

Adding 10% capacity cushion for preventive maintainence = 10930 + 10%*10930 = 12023

Total production hours = 2000

Thus 6 machines (12023/2000) are required