AlwaysRain Irrigation. Inc., would like to determine capacity requirements for t

Question

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. Suppose that AlwaysRain Irrigation's marketing department will undertake an intense ad campaign for the bronze sprinklers, which are more expensive but also more durable than the plastic ones. Forecast demand for the next four years is 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 11,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires three operators and can produce up to 180,000 sprinklers. Three bronze machines and only one injection molding machine are available. In anticipation of the ad campaign, AlwaysRain bought an additional bronze machine. What are the capacity implications of the marketing campaign (assume no learning)? (Enter the demand values in thousands. Round your answers to 2 decimal places.)

Explanation / Answer

Year 1 Year 2 Year 3 Year 4   Plastic     Demand for plastic sprinklers 94 116 133 135     Percentage of capacity used 52% 64% 74% 75%     Machine requirements 1 1 1 1     Labor requirements 3 3 3 3   Bronze     Demand for bronze sprinklers 30 37 36 51     Percentage of capacity used 91% 84% 82% 116%     Machine requirements 4 4 4 5     Labor requirements 12 12 12 15

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