Question

In: Accounting

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

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.)


Solutions

Expert Solution

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)


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