resource/tomterwa/sample %20wdInns%2020 pot No res Options 7. Estimating Capacit

ID: 379198 • Letter: R

Question

resource/tomterwa/sample %20wdInns%2020 pot No res Options 7. Estimating Capacity Requirements Sure-foot Sandal Company operates two 8-hour shifts, five days per week, 50 weeks per year. A capacity cushion of 5 percent will suffice Time standards, lot sizes, and demand forecasts are: Time Standards Processi Setup Demand Forecast (pairslyr) 80,000 60,000 Lot Size Product (hr/lot)(pairs/lo) Men's sandals Women's sandals Children's sandals ng (hr/pair) 0.05 0.10 0.02 0.5 2.2 3.8 240 180 360 120,000 Estimate Capacity Requirements: 8. A. Complete the following MPS for Product X 6 7 8 9

Explanation / Answer

Shifts/Day = 2

Hours/shift=8

Days/week =5
weeks/year =50

Cushion =5%

Productive hours =(2*8*5*50)*0.95 =3800

Demand forecast

Components

Processing

Setup

Lot Size

Pessimistic

Expected

Optimistic

Men’s sandal

0.05

0.5

240

80000

Woman’s sandal

0.10

2.2

180

60000

Children’s sandal

0.02

3.8

360

120000

M=[(Dp+(D/Q)s]men+ (Dp+(D/Q)s]women + (Dp+(D/Q)s]children] / [N{1-(C/100)}]

M={[(80000*0.5+(80000/240)0.5]+ [60000*0.1 +(60000/180)2.2] + [120000*0.02)+(120000/360)*3.8]}/{4000{1-(5/100)}

M=14567hours/year/3800 hours/machine year

M=3.84 = 4 machines

So capacity requirement = 4 machines