Week2 - Chapter 4 Questions 3. What are some capacity...

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Chapter 4 Questions Waiting areas, distances from boarding gates, ground crew requirements, landing strips. 3. What are some capacity balance problems faced by the following organizations or facilities? a. An airline terminal. b. A university computing lab. The number of computer workstations, the size of each workstation (room for student papers, etc.), the mix of different computer types (Mac or PC), the number of printers, the capacity of the network access, study space for students waiting. . c. A clothing manufacturer. Many manufacturers now use highly decentralized shops to make clothes. This means that capacity of multiple sites must be accounted for in planning production. 6. What is capacity balance? Why is it hard to achieve? What methods are used to deal with capacity imbalances? In a perfectly balanced plant, the output of each stage provides the exact input requirement for the subsequent stage. This continues throughout the entire operation. This condition is difficult to achieve because the best operating levels for each stage generally differ. Variability in product demand and the processes may lead to imbalance, in the short run. There are various ways of dealing with capacity imbalances. One is to add capacity to those stages that are the bottlenecks. This can be achieved by temporary measures such as overtime, leasing equipment, or subcontracting. Another approach is to use buffer inventories so that interdependence between two departments can be loosened. A third approach involves duplicating the facilities of one department upon which another is dependent.
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BUSN 6110 Operations Project Management Summer, 2008 Week 2 Burnett Isenberg Page 86 1. AlwaysRain Irrigation, Inc., would like to determine capacity requirements for the next four years. Currently two production lines are in place for 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: 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 260 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. Each bronze machine requires two operators and can produce up to 12,000 sprinklers. The plastic injection molding machine 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 three years? Plastic Available capacity per year = 1 plastics machine x 200,000 = 200,000 Year 1: 97/200 = .485 for plastics machine = .485 Year 2: 115/200 = .575 for plastics machine = .575 Year 3: 136/200 = .680 for plastics machine = .680 Year 4: 141/200 = .705 for plastics machine = .705
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This note was uploaded on 03/06/2012 for the course FINANCE 5700 taught by Professor Bob during the Spring '12 term at websteruniv.edu.

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Week2 - Chapter 4 Questions 3. What are some capacity...

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