Knott\'s Industries manufactures standard and super premium backyard swing sets.
ID: 355231 • Letter: K
Question
Knott's Industries manufactures standard and super premium backyard swing sets. Currently it has four identical swing-set-making machines, which are operated 225 days per year and 8 hours each day. A capacity cushion of 15 percent is desired. The following information is also known: Annual Demand Standard Processing Time Average Lot Size Standard Setup Time per Lot 20,000 10 min 10,000 20 min 35 45 min 30 min a. Does Knott's have sufficient capacity to meet annual demand? Knott's ? have sufficient capacity o meet annual demand because machines are needed. Enter your response rounded the next whole number.Explanation / Answer
KNOTT
Number of setups required per year =Annual demand/ average lot size
Total setup time required, per year = Number of setups required per year * standard setup time per lot
Total processing time required, per year = Annual demand* standard processing time for 1 unit
standard model
super premium model
Annual demand
20000
10000
standard processing time for 1 unit
10min=10/60=0.167 hours
20 min=20/60=0.33 hrs
average lot size
55
35
standard setup time per lot
30 min= 30/60=0.5hrs
45min=45/60=0.25 hrs
Number of setups required per year
=20000/55=363.33 setups per year
= 10000/35 =285.71 setups per year
Total setup time required
=363.33* 0.5= 181.81 hrs per year
= 285.71* 0.25 = 71.43 hrs per year
Total processing time required
= 0.167*20000 = 3340 hrs per year
=0.33*10000= 3300 hrs per year
Total setup time required for both models
=181.81+71.43= 253.24 hrs per year
Total processing time required for both models
= 3340+3000=6340 hrs per year
Cushion rate,C= 15%
Hours available from a single capacity (machine) unit per year,N
=225*8= 1800 hours per year
Hours available from a single capacity (machine) unit per year after deducting cushion
=N / [1-(C/100)]
=1800(1-(15/100)) =1530 hours per year
Capacity requirement
=Total time (setup +processing time) required to meet annual demand, for all products and services / Hours available from a single capacity (machine) unit per year after deducting cushion
= (253.24+6340)/1530=4.31 machines (or 5 machines)
Required capacity is more than the available capacity
Answer
Knott does not have sufficient capacity because 5 machines are required
standard model
super premium model
Annual demand
20000
10000
standard processing time for 1 unit
10min=10/60=0.167 hours
20 min=20/60=0.33 hrs
average lot size
55
35
standard setup time per lot
30 min= 30/60=0.5hrs
45min=45/60=0.25 hrs
Number of setups required per year
=20000/55=363.33 setups per year
= 10000/35 =285.71 setups per year
Total setup time required
=363.33* 0.5= 181.81 hrs per year
= 285.71* 0.25 = 71.43 hrs per year
Total processing time required
= 0.167*20000 = 3340 hrs per year
=0.33*10000= 3300 hrs per year
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