*PLEASE CHECK NUMBERS BEFORE POSTING AND COMPLETE ALL ANSWER BLANKS AlwaysRain I

Question

*PLEASE CHECK NUMBERS BEFORE POSTING AND COMPLETE ALL ANSWER BLANKS

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 three 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 235,000 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 34 41 54 56 Plastic 180 12 19 14 15 Plastic 360 49 54 64 69 Bronze 90 9 8 7 14 Bronze 180 3 3 9 12 Bronze 360 7 11 15 16

Explanation / Answer

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Plastic Available capacity per year = 1 plastics machine x 235,000 = 235,000 Year 1:   95/235 = .404 for plastics machine = .404 Year 2: 114/235= .485 for plastics machine = .485 Year 3: 132/235 = .562 for plastics machine = .562 Year 4: 140/235 = .596 for plastics machine = .596 Labor requirement per year = 5 per plastics machine Year 1: .404*5 = 2.02 operators Year 2: .485*5= 2.43 operators Year 3: .562*5 = 2.81 operators Year 4: .596 x 5 = 2.98 operators Plastic Year 1 Year 2 Year 3 Year 4 Demand for plastic sprinklers 95 114 132 140 Percentage of capacity used 40.40% 48.50% 56.20% 59.60% Machine requirements 0.404 0.485 0.562 0.596 Labor requirements 2.02 2.43 2.81 2.98 Bronze Available capacity per year = 3 bronze machines x 15000 = 45,000 Year 1: 19/45 = .422 x 3 bronze machines = 1.27 Year 2: 22/45 = .489 x 3 bronze machines = 1.467 Year 3: 31/45 = .689 x 3 bronze machines = 2.07 Year 4: 42/45 = .933 x 3 bronze machines = 2.8 Labor requirement per year = 2 operators per bronze machine Year 1: 1.27 x 3 = 3.81 operators Year 2: 1.467 x 3 = 4.4 operators Year 3: 2.07 x 3 =6.21 operators Year 4: 2.8 x 3 = 8.4 operators Bronze Year 1 Year 2 Year 3 Year 4 Demand for bronze sprinklers 19 22 31 42 Percentage of capacity used 42.20% 48.90% 68.90% 93.30% Machine requirements 1.27 1.47 2.07 2.8 Labor requirements 3.81 4.4 6.21 8.4

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