AlwaysRain Irrigation, Inc., would like to determine capacity requirements for the next four years. Currently two...

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AlwaysRain Irrigation, Inc., would like to determine capacityrequirements for the next four years. Currently two productionlines are in place for making bronze and plastic sprinklers. Threetypes of sprinklers are available in both bronze and plastic:90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and360-degree nozzle sprinklers. Management has forecast demand forthe next four years as follows:

YEARLY DEMAND
1 (IN 000s)2 (IN 000s)3 (IN 000s)4 (IN 000s)
Plastic 9031405253
Plastic 18014161714
Plastic 36052526365
Bronze 9066515
Bronze 18022513
Bronze 36010121122


Both production lines can produce all the different types ofnozzles. The bronze machines needed for the bronze sprinklersrequire three operators and can produce up to 18,000 sprinklers.The plastic injection molding machine needed for the plasticsprinklers requires four operators and can produce up to 300,000sprinklers. Three bronze machines and only one injection moldingmachine are available.

What are the capacity requirements for the next four years?(Assume that there is no learning.) (Enter the demandvalues in thousands. Round your answers to 2 decimalplaces.)


Year 1Year 2Year 3Year 4
Plastic
Demand for plastic sprinklers
Percentage of capacity used%%%%
Machine requirements
Labor requirements
Bronze
Demand for bronze sprinklers
Percentage of capacity used%%%%
Machine requirements
Labor requirements

Answer & Explanation Solved by verified expert
3.7 Ratings (315 Votes)

(a)

Plastic Machines

Production = 300000

There is just one machine available.

Available capacity per year = 300000

Required operators = 4 per machine

Bronze Machines

Production = 18000

They are 3 machines available

Total production =3 *18000 = 54000

Required operators = 3 per machine

Formulas used:

% of capacity used = (Demand /Capacity) * 100

Machine requirements = (Demand/Capacity of a single machine)

Labor requirements = Machine requirements * No of operators required per machine

Plastic Year 1 Year 2 Year 3 Year 4
Demand (000's) 97 108 132 132
Capacity (000's) 300 300 300 300
% of capacity used 32.33% 36.00% 44.00% 44.00%
Machine requirement 0.323 0.360 0.440 0.440
Labor requirements 1.293 1.440 1.760 1.760
Bronze Year 1 Year 2 Year 3 Year 4
Demand (000's) 18 20 21 50
Capacity (000's) 54 54 54 54
% of capacity used 33.33% 37.04% 38.89% 92.59%
Machine requirement 0.333 0.370 0.389 0.926
Labor requirements 1.000 1.111 1.167 2.778

(b) There is sufficient capacity to meet the demand over the next 4 years.


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