Solution - Week 2 Chapter Questions - 8.30.11

Operations and Supply Chain Management (The Mcgraw-Hill/Irwin Series)

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Chapter 4: Problem 1 AlwaysRain 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 forecast demand for the next four years as follows: 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 Yearly Demand 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.) For the Bronze machines Bronze machines: produces 12,000 units Three machines in a line, 2 lines = 6 total bronze machines at 12,000 units each = 6 * 12,000 = 72,000 bronze units available to be made each year. So, when the demand in first year for the bronzes is 90,000 + 180,000 + 360,000 = 630,000 you cannot supply all of those demands. So your bronze capacity per year is 72,000 units and 72,000 * 4 (for years) = 288,000 units may be made in four years. For the Plastic units Plastic machines produces 200,000 units per machine. Only one machine per line with 2 lines = 2 total machines for plastic. 200,000 * 2 (machines) = 400,000 units can be made each year. Over 4 years it can produce, 400,000 * 4 = 1,600,000 total units. The demand in the first year is the same as bronze = 630,000 units. It would be better to break this problem down by each year to see if there is enough capacity to handle the projected demand… Consider this….
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Plastic Year 1 Year 2 Year 3 Year 4 Demand for plastic sprinklers 97 115 136 141 Percentage of capacity used 48.5% 57.5% 68.0% 70.5% Machine requirements .485 .575 .680 .705 Labor requirements 1.94 2.30 2.72 2.82 Bronze Year 1 Year 2 Year 3 Year 4 Demand for bronze sprinklers 21 24 29 34 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 2. Requirements for plastic remain unchanged. Bronze Year 1 Year 2 Year 3 Year 4 Demand for bronze sprinklers 32 36 41 52 Percentage of capacity used 88.9% 100.0 % 113.9 % 144.4 % Machine requirements 2.67 3 3.42 4.33 Labor requirements 5.33 6 6.84 8.67 It is obvious that not enough capacity is available after year two to meet the increased demand. Always Rain will have to consider purchasing additional machines for the bronze operations.
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Solution - Week 2 Chapter Questions - 8.30.11 - Chapter 4:...

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