A company manufactures a line of printers on a produce-to-order basis. Eachprint

Question

A company manufactures a line of printers on a produce-to-order basis. Eachprinter requires an average of 30 labor-hours, and the manufacturing plant usesa backlog of orders to allow a level capacity aggregate plan. This plan provides aweekly capacity of 9,000 labor-hours. The company has prepared this five-week MPS: SEE TABLE BELOW

ANSWER THREE QUESTIONS, SHOW ALL WORK/FORMULAS

a. Compute the actual labor-hours required at the plant in each week andfor the total five weeks to produce the MPS (load). Compare the load tothe labor-hours capacity in each week and for the total five weeks (rough-cut capacity planning).

b. Does enough production capacity exist to produce the MPS?

c. What changes in the MPS would you recommend?

Weekly production 1 2 3 4 5 Printers 200 275 275 300 360

Explanation / Answer

The rough cut capacity analysis is given below.

Weekly production Total 1 2 3 4 5 Printers 200 275 275 300 360 1410 Load 6000 8250 8250 9000 10800 42300 Capacity 9000 9000 9000 9000 9000 45000 Under/Over Load 3000 750 750 0 -1800 2700 The plant is underloaded in the first 3 weeks (primarily week 1) and it is overloaded in the last 2 weeks of the schedule. – Some of the production scheduled for week 4 and 5 should be moved to week 1.

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