25 of 47 (16 complete) This Test: 47 pts Up, Up, and Away is a producer of kites

Question

25 of 47 (16 complete) This Test: 47 pts Up, Up, and Away is a producer of kites and wind socks Relevant data on the Kites Wind Socks 12,000 units/year 80 unts 1.0 hourunt 40 hourslot 28000 units/year 15 units Lot size The shop works two shifts per day, 8 hours per shit, 180 days per year Currenty should be purchased to meet the upcoming year's demand without resoring operates four machines, and desires a 25 percent capacity cushion How many machines years demand without resorting to any short term capacity sob The number of additional machines required is Enter your response rounded up to the next uhole number) 5 6

Explanation / Answer

For Kites :

Demand forecast = 28,000 units/ year

Lot size = 15 units

Therefore, number of lots = 1866.67

Total cost = Standard set up time/lot x Number of lots + Standard processing time/ unit x Annual demand

= 3 x 1866.67 + 0.2 x 28000

= 5600 + 5600 hours

= 11200 hours

For Wind socks :

Demand forecast = 12,000 units/ year

Lot size = 80units

Therefore, number of lots = 150

Total cost = Standard set up time/lot x Number of lots + Standard processing time/ unit x Annual demand

= 4 x 150+ 1 x 12000

= 600 + 12000

= 12600 hours

Total hours required to produce above items = 11200 hours + 12600 hours = 23800 hours

Available number of hours in a year = 2 shifts/ day x 8 hours/shift x 180 days/ year = 2880 hours

Let the number of machines required to produce above quantity = N

Therefore,

Gross available hours = 2880 .N

Capacity cushion = 25%

Therefore , net available hours = 75% of 2880.N = 2160.N

Therefore,

2160.N = 23800 ( i.e. total time required to produce above items )

Or, N = 28800/2160

Or, N = 13.33 ( 14 rounded to next higher whole number )

The number of additional machines required = 14

The number of additional machines required = 14

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