Question

1. Always Rain 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. Management has forecast demand for the next four years as follows: YEARLY DEMAND 2 (IN COC) 3(IN COO) 1 (IN 2008) 4 (IN 000) Plastk 90 Plastk 150 Plastic 360 Bronze 90 Bronze 180 Bronze 360 w Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. Three bronze machines and only one injection molding machine are available. What are the capacity requirements for the next four years? Is there sufficient capacity over the next four years? What is the capacity utilization for the plastic machines in Year 3? What is the bronze machine requirement for year 3? What is the labor requirement for plastic in year 4? What year and product has the highest capacity used?

Answer 1

Question 1

Capacity used for each year for plastic= (Demand / total capacity)*100
Year 1 : Capacity used = 97000/2,00,000 = 0.485= 48.5%
Year 2 : Capacity used = 115000/200000 = 0.575 = 57.5%
Year 3 : Capacity used = 136000/200000 = 0.68 = 68%
Year 4 : Capacity used = 141000/200000 = 0.705= 70.5%

Capacity used for each year for bronze = (Demand / total capacity)*100
Year 1 : Capacity used = 21000/36000 = 0.583= 58.3%
Year 2 : Capacity used = 24000/36000 = 0.667 = 66.7%
Year 3 : Capacity used = 29000/36000 = 0.806= 80.6%
Year 4 : Capacity used = 34000/36000= 0.944= 94.4%

Since production is under 100% for all three years there is enough production capacity for all the years for both products

QUESTION 2

Year 3 : Capacity used = 136000/200000 = 0.68 = 68% 68% is the capacity requirement for plastic machine in year 3

QUESTION 3

Year 3 : machine used = 136000/200000 = 0.68

Bronze machine requirement is 0.68 times in year 3

QUESTION 4

Year 4 = 0.705 * 4 =2.82 operators Labour requirement for plastic in year 4 is 2.82 ~~~ 3 operators

QUESTION 5

Plastic	Year1	Year2	Year3	Year4
Demand for plastic sprinklers	97000	115000	136000	141000
Percentage of capacity used	48.50%	57.50%	68%	70.50%

Bronze	Year1	Year2	Year3	Year4
Demand for Bronze sprinklers	21	24	29	34
Percentage of capacity used	58.30%	66.70%	80.60%	94.40%

tHUS, bronze in year 4 has highest capacity.

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