In: Accounting
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. Management has forecast demand for
the next four years as follows:
YEARLY DEMAND | ||||||||
1 (IN 000s) | 2 (IN 000s) | 3 (IN 000s) | 4 (IN 000s) | |||||
Plastic 90 | 31 | 40 | 52 | 53 | ||||
Plastic 180 | 14 | 16 | 17 | 14 | ||||
Plastic 360 | 52 | 52 | 63 | 65 | ||||
Bronze 90 | 6 | 6 | 5 | 15 | ||||
Bronze 180 | 2 | 2 | 5 | 13 | ||||
Bronze 360 | 10 | 12 | 11 | 22 | ||||
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 18,000 sprinklers.
The plastic injection molding machine needed for the plastic
sprinklers requires four operators and can produce up to 300,000
sprinklers. Three bronze machines and only one injection molding
machine are available.
What are the capacity requirements for the next four years? (Assume
that there is no learning.) (Enter the demand values in
thousands. Round your answers to 2 decimal places.)
ANSWER
BRONZE MACHINES
Productions |
18,000 Units |
Total Bronze Machines |
3 |
Lines |
2 |
Total Bronze units available for year(18000*3*2) |
108,000 |
Bronze capacity throughout four years(108,000*4) |
432,000 |
Therefor Bronze machine cannot meet the total requirement(90,000+180,000+360,000)=630,000)
PLASTIC MACHINES
Productions |
300,000 |
Total injection machine |
1 |
Lines |
2 |
Total plastic units available for year(300,000*1*2) |
600,000 |
Plastic capacity throughout four years(600,000*4) |
2,400,000 |
Demand is same as above in bronze(630,000)
YEAR 1 |
YEAR 2 |
YEAR 3 |
YEAR 4 |
|
PLASTIC |
||||
Plastic 90 |
31 |
40 |
52 |
53 |
Plastic 180 |
14 |
16 |
17 |
14 |
Plastic 360 |
52 |
52 |
63 |
65 |
Total demand for plastic |
97 |
108 |
132 |
132 |
Percentage of capacity used(per 300000) |
32.33 |
36 |
44 |
44 |
Machine requirement(NO. of Machine 1) |
0.323 |
0.36 |
0.44 |
0.44 |
Labor requirement(4 operators) |
1.292 (0.323*4) |
1.44 (0.36*4) |
1.76 (0.44*4) |
1.76 (0.44*4) |
YEAR 1 |
YEAR 2 |
YEAR 3 |
YEAR 4 |
|
BRONZE |
||||
Bronze 90 |
6 |
6 |
5 |
15 |
Bronze 180 |
2 |
2 |
5 |
13 |
Bronze 360 |
10 |
12 |
11 |
22 |
Total demand for bronze |
18 |
20 |
21 |
50 |
Percentage of capacity used(18000*3=54000) |
33.33 |
37.03 |
38.88 |
93 |
Machine requirement(no. of machine 3) |
0.999 |
1.1109 |
1.1664 |
2.79 |
Labor requirement(no. of operators 3) |
2.997 (0.999*3) |
3.3327 (1.1109*3) |
3.4992 (1.1664*3) |
8.37 (2.79*3) |