A department works one 8-hour shift, 250 days a year, and has these figures for usage of amachine that is currently being considered:ProductAnnualDemandStandard ProcessingTime per Unit (hr)Processing TimeNeeded (hr)1 400 5.0 2,0002 300 8.0 2,4003 700 2.0 1,4005,800Units of capacity needed = Processing time needed ___________________________ Processing time capacity per unit (5–3)Working one 8-hour shift 250 days a year provides an annual capacity of 8 × 250 =2,000 hours per year. Consequently, three of these machines would be needed to handle therequired volume:5,800 hours __________________ 2,000

A department works one 8-hour shift, 250 days a year, and has these figures for usage of amachine that is currently being considered:
Product
Annual
Demand
Standard Processing
Time per Unit (hr)
Processing Time
Needed (hr)
1 400 5.0 2,000
2 300 8.0 2,400
3 700 2.0 1,400
5,800
Units of capacity needed = Processing time needed ___________________________ Processing time capacity per unit (5–3)
Working one 8-hour shift 250 days a year provides an annual capacity of 8 × 250 =
2,000 hours per year. Consequently, three of these machines would be needed to handle the
required volume:
5,800 hours __________________ 2,000

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