AlwaysRain Irrigation, Inc., would like to determine capacity requirements for t
ID: 360933 • Letter: A
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:
Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require four operators and can produce up to 15,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires five operators and can produce up to 240,000 sprinklers. Three bronze machines and only one injection molding machine are available.
What are the capacity requirements for the next four years? (Assume that there is no learning.) (Enter the demand values in thousands. Round your answers to 2 decimal places.)
YEARLY DEMAND 1 (IN 000s) 2 (IN 000s) 3 (IN 000s) 4 (IN 000s) Plastic 90 33 42 54 51 Plastic 180 14 15 18 17 Plastic 360 51 54 61 68 Bronze 90 6 6 5 14 Bronze 180 4 4 6 12 Bronze 360 10 12 14 17Explanation / Answer
Capacity Utilization = Actual Output / Design Capacity.
Capacity Requirements for next four years:
Particulars
Year 1
Year 2
Year 3
Year 4
Plastic Capacity
240,000
240,000
240,000
240,000
Number of machines available
1
1
1
1
Number of labor required per machine
5
5
5
5
Demand for plastic sprinklers
98,000
111,000
133,000
136,000
Capacity Utilization %
(98,000 / 240,000) = 40.83 %
(111,000 / 240,000) = 46.25 %
(133,000 / 240,000) = 55.42 %
(136,000 / 240,000) = 56.67 %
Machine Requirements
0.41 x 1 = 0.41
0.46 x 1 = 0.46
0.55 x 1 = 0.55
0.57 x 1= 0.57
Labor Requirements
0.41 x 5 = 2.05
0.46 x 5 = 2.3
0.55 x 5 = 2.75
0.57 x 5 = 2.85
Bronze Capacity with 1 machine
15,000
15,000
15,000
15,000
Number of machines available
3
3
3
3
Number of workers required for 1 machine
4
4
4
4
Demand for Bronze sprinklers
20,000
22,000
25,000
43,000
Capacity Utilization %
(20,000 / 45,000) = 44.44 %
(22,000 / 45,000) = 48.89 %
(25,000 / 45,000) = 55.56 %
(43,000 / 45,000) = 95.56 %
Machine Requirements
0.44 x 3 = 1.32
0.49 x 3 = 1.47
0.56 x 3 = 1.68
0.96 x 3 = 2.88
Labor Requirements
1.32 x 4 = 5.28
1.47 x 4 = 5.88
1.68 x 4 = 6.72
2.88 x 4 = 11.52
Particulars
Year 1
Year 2
Year 3
Year 4
Plastic Capacity
240,000
240,000
240,000
240,000
Number of machines available
1
1
1
1
Number of labor required per machine
5
5
5
5
Demand for plastic sprinklers
98,000
111,000
133,000
136,000
Capacity Utilization %
(98,000 / 240,000) = 40.83 %
(111,000 / 240,000) = 46.25 %
(133,000 / 240,000) = 55.42 %
(136,000 / 240,000) = 56.67 %
Machine Requirements
0.41 x 1 = 0.41
0.46 x 1 = 0.46
0.55 x 1 = 0.55
0.57 x 1= 0.57
Labor Requirements
0.41 x 5 = 2.05
0.46 x 5 = 2.3
0.55 x 5 = 2.75
0.57 x 5 = 2.85
Bronze Capacity with 1 machine
15,000
15,000
15,000
15,000
Number of machines available
3
3
3
3
Number of workers required for 1 machine
4
4
4
4
Demand for Bronze sprinklers
20,000
22,000
25,000
43,000
Capacity Utilization %
(20,000 / 45,000) = 44.44 %
(22,000 / 45,000) = 48.89 %
(25,000 / 45,000) = 55.56 %
(43,000 / 45,000) = 95.56 %
Machine Requirements
0.44 x 3 = 1.32
0.49 x 3 = 1.47
0.56 x 3 = 1.68
0.96 x 3 = 2.88
Labor Requirements
1.32 x 4 = 5.28
1.47 x 4 = 5.88
1.68 x 4 = 6.72
2.88 x 4 = 11.52
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