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Up, Up, and Away is a producer ot kites and wind socks Relevant data on the hoti

ID: 416945 • Letter: U

Question

Up, Up, and Away is a producer ot kites and wind socks Relevant data on the hotieneck opertion in the shop tor the upcaming tiscal year are given in the tollowing table Item Deriand forecast Lot size Slandard processinsa tirne Kites 30,000 unilstyear 20 units 0.3 houunit Wind Socks 12,000 unils yeai 70 units 0.8 hourunit 1.0 hourslot Standard setup time30hourslot 25 percent capacity cushion. How many machines should be purcnased to meet the upcoming years dem nd without The shop works two shifts per day, 8 hours per shift 180 days per year. Currently, he company operates our machines, and desires resorlirgo any sot-lei capacily solulions? The number of additional machines required is | ·(Enter your response rounded up to the next whose number

Explanation / Answer

Total time required to produce Kites :

Number of lots required = 30,000 / 20 = 1500 lots

Total set up time required = Set up time/ lot x Number of lots = 3 x 1500 = 4500 hours

Total processing time required = Processing time/ unit x Number of units in a year = 0.3 x 30,000 = 9000 hours

Thus, total time required = Total set up time + Total processing time =4500 + 9000 = 13500 hours

Total time required to produce Wind socks:

Number of lots required = 12000/70

Total set up time required = Set up time/ lot x Number of lots = 4 x 12000/70 = 685.71 hours

Total processing time required = Processing time/ unit x Number of units in a year = 0.8 x 12000 = 9600 hours

Thus, total time required = Total set up time + Total processing time = 685.71 + 9600 = 10285.71 hours

Cumulative time required for Kites and Wind socks = 13500 + 10285.71= 23785.71 hours

Calculation for machines :

Gross available time per machine in a year = 8 hours/ shift x 2 shifts / day x 180 days = 2880 hours

Capacity cushion ( %) = 25

Therefore ,

Net available time per machine , hours

= Gross available time per machine / ( 1 + capacity cushion/100)

= Gross available time per machine in a year / 1.25

= 2880/1.25

= 2304 hours

Thus number of machines required to meet cumulative demand for Kites and Wind socks

= Cumulative time required for Kites and Wind socks / Net available time per machine

= 23785.71/2304

= 10.32 ( 11 rounded to next higher whole number )

Total requirement of machines = 11

Number of machines already available = 4

Therefore , Number of additional machines required = 11 – 4 = 7

THE NUMBER OF ADDITIONAL MACHINES REQUIRED IS 7

THE NUMBER OF ADDITIONAL MACHINES REQUIRED IS 7

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