The King Company is producing two types of products: A and B. Both products are
ID: 436950 • Letter: T
Question
The King Company is producing two types of products: A and B. Both products are produced on the same machining operation. The machines operate on two 8-hour shifts, 5 days per week, and 50 weeks per year. The manager wants to maintain a 15 percent capacity cushion. The demand forecast, batch sizes, processing times, and setup times are given in the below table. Determine number of machines needed.Product A Product B
Demand forecast (units/yr) 140,000 180,000
Batch size (units/batch) 50 40
Processing time (hr/unit) 0.2 0.15
Setup time (hr/batch) 0.8 1.2
Explanation / Answer
PRODUCT A
Total units per year = 140,000
Total processing time per year = Demand * Processing time per unit = 140,000 * 0.2 = 28,000 hrs
No .of batches = demand/batch size = 140,000/50 = 2800
Total setup time = No. of batches * setup time = 2800 * 0.8 = 2240
Total hours required = 28,000 + 2240 = 30,240
PRODUCT B
Total units per year = 180,000
Total processing time per year = Demand * Processing time per unit = 180,000 * 0.15 = 27,000 hrs
No .of batches = demand/batch size = 180,000/40 = 4500
Total setup time = No. of batches * setup time = 4500 * 1.2 = 5400
Total hours required = 27000 + 5400 = 32,400
Total hours Required for both products = 30,240 + 32,400 = 62,640
Available Hours per unit in 1 year = 16 * 5 * 50 = 4000
Capacity = Total hours needed/( Hours per unit * ( 1 - capcity cushion/100))
capacity = 62,640/(4000 * ( 1 - 15/100)) = 18.42 19
So a total of 19 units are needed
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