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

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
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?
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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
Image of page 2
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?
Image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
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
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern