The Union Manufacturing Company is producing two types of products: A and B. The

Question

The Union Manufacturing Company is producing two types of products: A and B. The demand forecasts, batch size, and time standards follow:

Demand forecast (units/yr)

Batch size (units/batch)

Processing time (hr/unit)

Setup time (hr/batch)

Both products are produced on the same machine, called Mark I.

Using Table 4.1, what is the total number of hours required of Mark I equipment for the next year?

Use the information in Table 4.1. The company works 250 days per year and operates two shifts, each covering 8 hours. If a 15 percent capacity cushion is maintained, how many hours of capacity can the company expect from each of its Mark I machines?

Use the information in Table 4.1. How many Mark I machines are required to produce Union Manufacturing's for the year's production?

Product A Product B

Demand forecast (units/yr)

1,000 4,000

Batch size (units/batch)

20 10

Processing time (hr/unit)

3.2 4.5

Setup time (hr/batch)

10 20

Explanation / Answer

Q1) Number of hours required of Mark I equipment based on products A and B = Total Processing Time+Total Setup Time = (1000*3.2)+(20*10)+(4000*4.5)+(10*20) = 21600 hours

Q2) Annual work hours = 250*2*8 = 4000 hours

Capacity cushion = 15%*4000 = 600 hours

Hours of capacity from Mark I machines = 4000+600 = 4600 hours

Q3) Number of Mark I machines required = 21600/4600 = 5 machines (approx)

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