AlwaysRain Irrigation, Inc., would like to determine capacity requirements for t

Question

AlwaysRain Irrigation, Inc., would like to determine capacity requirements for the next four years. Currently two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows:

YEARLY DEMAND (IN o0os) 3 (IN o00s) IN o00s) 1 (IN o00s) 32 15 50 1 (IN ooos Plastic 90 Plastic 180 Plastic 360 Bronze 90 Bronze 180 Bronze 360 56 18 16 64 12 15 18

Explanation / Answer

Plastic Available capacity per year = 1 plastics machine x 200,000 = 200,000 Year 1:   97/200 = .485 for plastics machine = .485 Year 2: 115/200 = .575 for plastics machine = .575 Year 3: 136/200 = .680 for plastics machine = .680 Year 4: 141/200 = .705 for plastics machine = .705 Labor requirement per year = 4 per plastics machine Year 1: .485 x 4 = 1.94 operators Year 2: .575 x 4 = 2.30 operators Year 3: .680 x 4 = 2.72 operators Year 4: .705 x 4 = 2.82 operators Plastic Year 1 Year 2 Year 3 Year 4 Demand for plastic sprinklers 97 115 136 141 Percentage of capacity used 48.50% 57.50% 68.00% 70.50% Machine requirements 0.485 0.575 0.68 0.705 Labor requirements 1.94 2.3 2.72 2.82 Bronze Available capacity per year = 3 bronze machines x 12000 = 36,000 Year 1: 21/36 = .583 x 3 bronze machines = 1.75 Year 2: 24/36 = .667 x 3 bronze machines = 2.00 Year 3: 29/36 = .806 x 3 bronze machines = 2.42 Year 4: 34/36 = .944 x 3 bronze machines = 2.83 Labor requirement per year = 2 operators per bronze machine Year 1: 1.75 x 2 = 3.5 operators Year 2: 2.0 x 2 = 4 operators Year 3: 2.42 x 2 = 4.84 operators Year 4: 2.83 x 2 = 5.66 operators Bronze Year 1 Year 2 Year 3 Year 4 Demand for bronze sprinklers 21 24 29 34 Percentage of capacity used 58.30% 66.70% 80.60% 94.40% Machine requirements 1.75 2 2.42 2.83 Labor requirements 3.5 4 4.84 5.66

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