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What is Capacity Cushion Calculation for Machines about?

The document discusses the capacity requirements for a plant that produces three control units. It provides processing times, setup times, lot sizes, and three demand forecasts. The number of machines required is calculated for each demand forecast with the current lot sizes and a 25% capacity cushion. The calculations show that 2 machines are needed for the pessimistic forecast, 3 for expected, and 4 for optimistic. Doubling lot sizes reduces this to 2 machines for all forecasts. With a 25% reduction in se

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