Question

In: Operations Management

You have been asked to put together a capacity plan for the Long Legs Shoe Company....

You have been asked to put together a capacity plan for the Long Legs Shoe Company. Your capacity measure is number of machines. Three products (men’s, women’s, and children’s shoes are manufactured. The time standards (processing and setup), lot sizes, and demand forecasts are given in the following table. The firm operates two 8-hour shifts, 5 days per week, 50 weeks per year. Experience shows that a capacity cushion of 5 percent is sufficient.

TIME STANDARDS

Product-------------- Processing (hr/pair) --------- Setup (hr/pair) -------- Lot Size (pairs/lot) ---------- Demand Forecast (pairs/yr)

Men’s sandals ----- 0.05 -------------------------------- 0.5 ------------------------ 240 ------------------------------- 80,000

Women’s sandals - 0.10 ------------------------------- 2.2 ------------------------ 180 ------------------------------- 60,000

Children’s sandals - 0.02 ------------------------------ 3.8 ------------------------ 360 ------------------------------- 120,000

a. How many machines are needed?

b. If the operation currently has two machines, what is the capacity gap?

Solutions

Expert Solution

a. How many machines are needed?

Number of hours of operations per year= (2 shifts/day)(8 hours/shift)(5 days/week)(50 weeks/year)

= 4000 hours/machine/year

No. of machines required= sum of machine hour requirements for all three products (Men, Women and children) divided by no. of productive hours available for 1 machine

Total time to produce the yearly demand of each product:

= (processing time*demand forecase) + (demand forecast/lotsize)(setup time)

Men’s =(0.05)(80,000)+(80,000/240)(0.5)= 4167 hrs

Women’s =(0.10)(60,000)+(60,000/180)(2.2)= 6733 hrs

Kid’s =(0.02)(120,000)+(120,000/360)(3.8)= 3667 hrs

Total time for all products =4167+6733+3667= 14567 hrs

With a 5% capacity cushion, the hours/machine/year that are available are: 4000(1-0.05) = 3800 hours/machine/year

Machines needed = (14,567/3800) = 3.83 = 4 machines

b. If the operation currently has two machines, what is the capacity gap?

3.83-2 = 1.83 i.e 2 machines. The capacity gap will be of 2 machines.

keosha answered 1 year ago
Next > < Previous

Related Solutions

You have been asked by the director of finance to put together a plan to invest...
You have been asked by the director of finance to put together a plan to invest in other companies. Your plan will manage a mutual fund with a $20 million portfolio with a beta of 1.50. Assume that the risk-free rate is 4.50%, and the market risk premium is 5.50%. You expect to receive an additional $5 million, which you plan to invest in a number of stocks. After investing the additional funds, you want the fund’s required return to...
Your manager has asked you to put together a survey that you are to send to...
Your manager has asked you to put together a survey that you are to send to all employees regarding topics they would like to be trained on. Write at least 10 effective questions and add them to the survey Examples: What areas do you feel as though you have deficiencies within that you would benefit from additional training? What topics do your peers most frequently ask you questions regarding? These questions will be challenging to think of, but that is...
You have been asked to plan the following covert operation for the AIC:                              &nbs
You have been asked to plan the following covert operation for the AIC:                                                                                     Activity Duration (days) Activity Immediate Predecessor Optimistic Most Likely Pessimistic A -- 1 2 3 B A 3 3 3 C B 4 6 8 D A 2 8 8 E A 6 9 12 F D,C 4 7 10 G D 10 10 16 H D,E 4 5 6 I F,G,H 2 2 2 What is the probability of the project taking more than 25 days...
You have been asked to develop a care plan for a new client. How would you...
You have been asked to develop a care plan for a new client. How would you go about identifying the needs and preferences of clients and their family members prior to developing this care plan
As a newly hired management accountant, you have been asked to prepare a profit plan for...
As a newly hired management accountant, you have been asked to prepare a profit plan for the company for which you work. As part of this task, you’ve been asked to do some what-if analyses. Following is the budgeted information regarding the coming year: Selling price per unit $ 100.00 Variable cost per unit 70.00 Fixed costs (per year) 1,200,000 Required: 1. What is the breakeven volume, in units and dollars, for the coming year? 2. Assume that the goal...
You have been asked to plan for the cost-optimal fulfillment of demand at four cities in...
You have been asked to plan for the cost-optimal fulfillment of demand at four cities in Africa-Johannesberg, Lusaka, Mombasa, and Nairobi. The relevant costs and demand (in kilograms) are shown in the table to your left. 1. In the box to your right of the constraint Please explain the function of each of the following constraints in the Solver model (10 POINTS EACH) Constraint $C22:$F22=0 $C26:$C29>=0 $G17:$G20=BINARY $G6:$G9>=$H17:$H20 If you fulfill the given demands under these constraints what is the...
As a newly hired management accountant, you have been asked to prepare a profit plan for...
As a newly hired management accountant, you have been asked to prepare a profit plan for the company for which you work. As part of this task, you’ve been asked to do some what-if analysis. Following is the budgeted information regarding the coming year: Selling price per unit $ 100.00 Variable cost per unit 70.00 Fixed costs (per year) 1,200,000. 1)What is the breakeven volume, in units, for the coming year? 2) Assume that of the $70 variable cost per...
Imagine you work in a correctional institution and have been asked to create a strategy plan...
Imagine you work in a correctional institution and have been asked to create a strategy plan for working with specific correctional populations. Your supervisor would like you to create an executive summary of your strategy. Select 1 correctional population to focus on. Write a 525- to 700-word executive summary in which you: Describe elements in the classification process. Explain the importance of proper classification. Discuss what challenges are associated with special populations, such as individuals with a mental illness and...
In that regard, you have been asked to join in as a consultant for a company...
In that regard, you have been asked to join in as a consultant for a company with global divisions in Brazil and Russia. Based on cultural differences in those countries, assess two cyber security threats and offer two strategic recommendations on how to defend against the threats.
You have been asked to prepare and plan a graduation ceremony. Develop at least 7 tasks...
You have been asked to prepare and plan a graduation ceremony. Develop at least 7 tasks and related subtasks for proposing this project. Number the tasks as Task 1, etc., and subtasks as Task 1.1, Tasks 1.2, Task 1.3, etc. Write clearly and legibly.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT