Four existing assembly lines have the flexibility to handle two products, but a
ID: 366410 • Letter: F
Question
Four existing assembly lines have the flexibility to handle two products, but a huge jump in budgeted demand requires adding additional lines.
Operations are scheduled for 350 days/year with two shifts of 10 hours each per day. In order to ensure they can react to rush or large orders, a 15% capacity cushion is desired. How many additional assembly lines are needed to deal with the following forecast:
Model A. Model B
Annual Demand 40,000 60,000
Set-up Time/ Batch 4 hrs 6 hrs
Run Time per unit 30 min 1 hr
Batch Size 2,000 3,000
Explanation / Answer
The capacity requirement for both the models is calculated as shown below:
Model A
Model B
Annual Demand
A
40,000
60,000
Std. Processing time (hours)
tp
30/60 = 0.5
1
Avg. Lot Size
L
2000
3000
Std. Setup Time per lot (hours)
ts
4
6
Total Processing time (hours)
B = (A x tp)
20000
60000
Total Setup time (hours)
C = (A/L) x (ts)
80
120
Total Time required (hours)
D = B + C
20080
60120
Total Time req. considering cushion (hours)
(Cushion = 15%)
E = D + 0.15D
23092
69138
Total time production time required
T
23092 + 69138
= 92230
Time available per line (hours/year)
TA = 350 days x 2 shifts x 10 hours/shift
7000
Number of lines required
N = T/TA
13.18
Actual number of machines required
14
Current available number of lines
4
Additional number of lines required
14 - 4 = 10
Additional assembly lines required = 10 lines
Model A
Model B
Annual Demand
A
40,000
60,000
Std. Processing time (hours)
tp
30/60 = 0.5
1
Avg. Lot Size
L
2000
3000
Std. Setup Time per lot (hours)
ts
4
6
Total Processing time (hours)
B = (A x tp)
20000
60000
Total Setup time (hours)
C = (A/L) x (ts)
80
120
Total Time required (hours)
D = B + C
20080
60120
Total Time req. considering cushion (hours)
(Cushion = 15%)
E = D + 0.15D
23092
69138
Total time production time required
T
23092 + 69138
= 92230
Time available per line (hours/year)
TA = 350 days x 2 shifts x 10 hours/shift
7000
Number of lines required
N = T/TA
13.18
Actual number of machines required
14
Current available number of lines
4
Additional number of lines required
14 - 4 = 10
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