Please answer BOTH A and B Knott\'s Industries manufactures standard and super p
ID: 350393 • Letter: P
Question
Please answer BOTH A and B
Knott's Industries manufactures standard and super premium backyard swing sets. Currently it has four identical swing-set-making machines, which are operated 250 days per year and 8 hours each day. A capacity cushion of 20 percent is desired. The following information is also known:
Standard Model
Super Premium Model
Annual Demand
20,000
10,000
Standard Processing Time
7
20
Average Lot Size
50
30
Standard Setup Time per Lot
30 min
45 min
a. Does Knott's have sufficient capacity to meet annual demand?
Knott's does OR not does have sufficient capacity to meet annual demand because _________machines are needed.
(Enter your response rounded up to the next whole number.)
B. If Knotts were to reduce the model from 45 to 30 mins would there be enough capacity to produce 20,000 units of each type of swing set.
If Knotts were to reduce the setup time of the model from 45 to 30 mins, how many machines are needed to produce 20,000 units?
Spring 2018 MGMT 339-11 12024 Homework: Assignment # 2 Score: 3.75 of 15 pts Jordan Kinder& 318/18 10:52 AM Score: 75 42%, 75 42 of 100 pts Problem 10 Bookmatch Knott's Industries manufactures standard and super premium backyard swing sets Currently it has four identicall swing-set-making machines, which are operated Standard Average Lot Size 20,000 7 min 50 30 min 10,000 20 min 30 45 min Time a. Does Knot's have suficient capacity to meet annual demand? Knotf's AllExplanation / Answer
Available capacity
The duration of machines running is 250x8 = 2000 hours in a year. With 4 machines, Knotts has a total production time of 2000x4 = 8000 hours per year.
Required capacity
The total time taken to produce a lot for Standard model
50x7 + 30 = 380 minutes
The total time taken to produce a lot for Super premium model
30x20 + 45 = 645 minutes
Taking annual demands into consideration we need
20,000/50 = 400 lots of standard models and,
10,000/30 = 334 lots of super premium model
This means the time taken to produce these will be
400x380 = 152,000 minutes or 2533.33 hours for standard model and,
334x645 = 215430 minutes or 3590.5 hours for super premium model
a) In total a running time of 2533.33+3590.5 = 6123.83 hours is required. A capacity cushion of 20% means we need make sure that we have a total running time of 6123.83*1.2 = 7348.6 hours
Since our total capacity is 8000 hours > required capacity 7349 hours, Knotts has sufficient capacity to meet annual demand. To meet the requirement of 7349 hours, Knott needs 4 machines.
b) If Knotts reduces the setup time from 45 to 30 minutes for the super-premium model and produces 20000 units, then our calculations will change.
Per lot production time 30x20 + 30 = 630 minutes
Number of lots needed = 20,000/30 = 667
Total production time = 667x630 = 420,210 minutes or 7003.5 hours.
This means a total running time of 2533.33 + 7003.5 = 9536.83 hours is required. Include a cushion of 20% and we need, 11,444.19 hours. Since our available capacity is 8000 hours, we can say that we do not have enough capacity to produce 20,000 of each type of swing set.
Each machine can work for 2000 hours hence number of machines required is 11,444.19 / 2000 = 5.7. Rounding the value up, we need 6 machines.
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