Always Rain Irrigation, Inc., would like to determine capacity requirements for

Question

Always Rain Irrigation, Inc., would like to determine capacity requirements for the next four years. Currently two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows: Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. Three bronze machines and only one injection molding machine are available. What are the capacity requirements for the next four years? (Assume that there is no learning.) (Enter the demand values in thousands. Round your answers to 2 decimal places.)

Explanation / Answer

Total forecast demand:

Plastic:

1 Plastic machine : each 2,00,000 / year with 4 operator

Available capacity = 2,00,000 per year

Capacity used for each year = (Demand / total capacity)*100

Year 1 : Capacity used = 97000/2,00,000 = 0.485= 48.5%

Year 2 : Capacity used = 115000/200000 = 0.575 = 57.5%

Year 3 : Capacity used = 136000/200000 = 0.68 = 68%

Year 4 : Capacity used = 141000/200000 = 0.705= 70.5%

Machine requirements for each year = (Demand / total capacity)*no of machines

No of machines for plastic = 1

Year 1 : machine used = 97000/2,00,000 = 0.485

Year 2 : machine used = 115000/200000 = 0.575

Year 3 : machine used = 136000/200000 = 0.68

Year 4 : machine used = 141000/200000 = 0.705

Labor requirement per year: 4 operators required

Labor required= machine used * no of operators

Year 1= 0.485*4 = 1.94 operators

Year 2 = 0.575 *4= 2.3 operators

Year 3 = 0.68 * 4= 2.72 operators

Year 4 = 0.705 * 4 =2.82 operators

Bronze:

3 Bronze machine : each 12,000 / year with 2 operator

Total capacity = 12,000 * 3 machine =36,000

Capacity used for each year = (Demand / total capacity)*100

Year 1 : Capacity used = 21000/36000 = 0.583= 58.3%

Year 2 : Capacity used = 24000/36000 = 0.667 = 66.7%

Year 3 : Capacity used = 29000/36000 = 0.806= 80.6%

Year 4 : Capacity used = 34000/36000= 0.944= 94.4%

Machine requirements for each year = (Demand / total capacity)*no of machines

Year 1 : Capacity used = (21000/36000)*3 = 1.75

Year 2 : Capacity used = (24000/36000)*3 = 2.00

Year 3 : Capacity used = (29000/36000)*3 =2.42

Year 4 : Capacity used = (34000/36000)*3=2.83

Labor requirement per year: 4 operators required

Labor required= machine used * no of operators

Year 1= 1.75 *2 = 3.5 operators

Year 2 = 2*2= 4 operators

Year 3 = 2.42* 2= 4.84 operators

Year 4 = 2.83* 2 =5.66 operators

Product/year year1(in 000's) year2(in 000's) year3(in 000's) year4(in 000's) Plastic 97 115 136 141 bronze 21 24 29 34

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