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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 17

Explanation / 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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