A machine shop must acquire several CNC horizontal milling machines to produce three new parts (A, B, and C) that have been added to the shop’s product line. Annual demand, machining cycle times, and scrap rates for the parts are given in the table below. The machine shop operates two 8-hour shifts for 250 days/year. The machines are expected to be 90% reliable. (a) How many CNC milling machines will be required to meet the specified annual demand for the three new parts? (b) If each CNC machine requires a floor area of 350 ft2, and there is a 30% allowance that must be added to the total machine space for aisles and parts storage, what is the total shop area that must be planned? Part Annual Demand Machining Cycle Time (min) Scrap Rate (%) A 30,000 15.0 5 B 40,000 8.0 8 C 50,000 10.0 3