Question

Coco cola Inc., would like to determine capacity requirement for the next four years. Currently two production lines are in place for making Coco Cola and Sprite. Three types of machines are available for Bottle and Cans: 80ml, 170ml and 350ml. 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)
Bottle 80 Bottle 170 Bottle 350 Cans 80 Cans 170 Cans 350	320 150 500 70 30 110	440 160 550 80 40 120	550 170 640 90 50 150	560 180 670 100 60 180

Both production lines can produce all the different types of bottles and cans. The bottle machines needed for the bottle require 2 operators and can produce up to 12,000 bottles. The can making machine needed for the cans requires 4 operators and can produce up to 200,000 cans. Three bottle machines and only one can machine are available. What are the capacity requirements for the next four years in terms of machinery and labor? Is there sufficient capacity for all years?

Answer 1

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