Knott\'s Industries manufactures standard and super premium backyard swing sets.
ID: 357099 • 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 275 days per year and 8 hours each day. A capacity cushion of 25 percent is desired. The following information is also known: Annual Demand Standard Processing Time Average Lot Size Standard Setup Time per Lot 0,000 25 min 30 45 min 20,000 10 min 30 min a. Does Knott's have sufficient capacity to meet annual demand? Knott's have suffcient capacity to meet annual demand becausemachines are needed. Enter your response rounded up to the next whole number)Explanation / Answer
Standar Model
Demand : 20,000, demand including capacity cushion = 1.25* 20,000 = 25000
Number of lots = 25000/55 = 455, Total time per lot = 10+30 = 40 mins
Total lots processed in a day = 8*60 / 40 = 480/40 = 12 lots
Number of days required by 1 machine to produce 455 lots = 38 days
Super Premium Model
Demand : 10,000 demand including capacity cushion = 1.25* 10,000 = 12,500
Number of lots = 12,500/30 = 417, Total time for a lot = 45+ 25 = 70 mins
Total lots processed in a day = 8*60 / 70 = 6 lots
Therefore, number of days required to produce 417 lots = 417/6 = 70 days
Since total available days are 275, single machine is enough to process both the models in 70+38 = 108 days
Hence, Knott's have sufficient capacity to meet the annual demand because only one machine is needed
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