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    See the attached file.
    Use the following demand data (1,000s) for the next two questions:

    1 2 3 4
    Product A 500 550 600 650
    Product B 200 225 275 300

    Currently there are three identical processing machines for producing these products. Each machine can produce 300,000 of product A or 200,000 of product B per year, or some combination of both.

    1. What percent of machine capacity is used in year 1?

    2. In which year will demand first exceed capacity?

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    Solution Summary

    The solution determines the percent of machine capacity used and solves which year will demand first exceed capacity.