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Chapter 1: Q4OQ (page 124)

Always Rain 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 forecasted demand for the next four years as follows:

Yearly Demand

1 (IN 000s)

2 (IN 000s)

3 (IN 000s)

4 (IN 000s)

Plastic 90

32

44

55

56

Plastic 180

15

16

17

18

Plastic 360

50

55

64

67

Bronze 90

7

8

9

10

Bronze 180

3

4

5

6

Bronze 360

11

12

15

18

Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 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).

Short Answer

Expert verified

The capacity requirement for the next four years is the same as first-year = 6, 30,000.

Step by step solution

01

Capacity requirement

It refers to the amount of knowledge or resources that a product or system can manage. All of these are critical because they define how the system may be utilized is namedcapacity requirement.

02

Calculating the capacity requirement for the following 4 year

Given,

Bronze machines have 3 lines and another one has 2 lines

Total machines of bronze = 3 x 2

= 6 machines.

Sprinklers produced per each sprinkler = 12000 units.

1st-year calculation of bronze sprinkler

= Total machines of bronze x produced sprinklers

= 6 x 12,000

= 72,000

Types of sprinklers available in bronze are:

90000, 180000, 360000

Where,

1st year of bronze machines

= 90000+180000+360000

= 6, 30,000

6, 30,000 are for less than 1st year.

Bronze is presenting the 1-year value determined over 4 years.

= 72000 x 4

= 2, 88,000 units

Given,

The plastic units can produce up to 2, 00,000 sprinklers.

Where plastic sprinkler has 1 line and another one has 2 lines

Hence, plastic line = 1 x 2

= 2

1st-year calculation of plastic sprinkler

= Plastic line x plastic unit produced

= 2 x 2, 00,000

= 400,000

Plastic is presenting the 1-year value determined over a period of 4 years.

= 4th-year x plastic sprinkler of 1set year

= 4 x 400,000

= 1, 60,000 units.

The capacity requirements for the subsequent four years of the bronze machine are going to be the same as the first year i.e., 6, 30,000.

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