Question

A printing company works on three types of printing jobs, each of which could be produced on the same model printing machine. The predicted annual demands and typical order sizes are shown in the table. The company has 2,000 production hours available each year and requires a 10% capacity cushion to allow for preventive maintenance, breakdowns, and other unforeseen circumstances. They have floor space for five printing machines. If the time needed to set up a printing machine to switch from one job to the next is identical for all three job types, what must their setup time be to achieve their required output?


Job Type Job A Job B Job C
Demand 6,000 4,000 5,000
Process time per unit .8 .75 .25
Average order size 40 100 50

Answer

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