Ch_3-2

# Ch_3-2 - Problem 1 Determining Capacity Requirements Solve...

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1 Problem 1: Determining Capacity Requirements Problem 1: Determining Capacity Requirements Solve Problem 10 in textbook (Page 75) Consider only the bronze sprinklers Available information: Bronze sprinklers Year 1 Year 2 Year 3 Year 4 Demand (thousand) 21 24 29 34 Available Capacity 3 machines each can produce 12 (thousand) sprinklers require 2 operators What is the capacity utilization? What are the required capacities? What capacity decision is suggested?

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2 Solution Solution Bronze Year 1 Year 2 Year 3 Year 4 Demand for bronze sprinklers 21 24 29 34 Available capacity 3*12 = 36 36 36 36 Percentage of capacity used Machine requirements Labor requirements
3 Solution Solution Bronze Year 1 Year 2 Year 3 Year 4 Demand for bronze sprinklers 21 24 29 34 Available capacity 36 36 36 36 Percentage of capacity used 58.3% 66.7% 80.6% 94.4% Machine requirements 1.75 2.00 2.42 2.83 Labor requirements 3.50 4.00 4.84 5.66 What capacity decision is suggested? (having currently 3 machines and 6 operators) - in case of low direct cost of capacity changes? - in case of high direct cost of capacity changes?

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4 Identify possible future conditions called states of nature Develop a list of possible alternatives , one of which may be to do nothing Determine the payoff associated with each alternative for every future condition 2. Decision Theory Process 2. Decision Theory Process
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