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Operation Managmnet

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

YEAR
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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