AlwaysRain Irrigation, Inc., would like to determine capacity requirements for t

Question

AlwaysRain 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.

Suppose that AlwaysRain Irrigation's marketing department will undertake an intense ad campaign for the bronze sprinklers, which are more expensive but also more durable than the plastic ones. Forecast demand for the next four years is

YEARLY DEMAND

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 17,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 280,000 sprinklers. Three bronze machines and only one injection molding machine are available. In anticipation of the ad campaign, AlwaysRain bought an additional bronze machine.

What are the capacity implications of the marketing campaign (assume no learning)? (Enter the demand values in thousands. Round your answers to 2 decimal places.)

AlwaysRain 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.

Explanation / Answer

Yearly Demand Particulars Year 1 (in '000) Year 2 (in '000) Year 3 (in '000) Year 4 (in '000) Year Plastic Total Bronze Total Plastic 90 degree nozzle 180 degree nozzle 360 degree nozzle 90 degree nozzle 180 degree nozzle 360 degree nozzle Demand for plastic sprinklers 96 109 131 138 1 33 12 51 96 13 7 12 32 Percentage of capacity used 34.29% 23.49% 20.63% 17.60% 2 41 15 53 109 12 3 15 30 Machine requirements 1 1 1 1 3 53 14 64 131 18 4 12 34 Labor requirements 3 2 2 2 4 54 15 69 138 24 12 21 57 Bronze Demand for bronze sprinklers 32 30 34 57 Bronze machine needs 2 operators and can produce 17,000 sprinklers Each operator can produce 8500 Percentage of capacity used 47.06% 28.85% 23.94% 32.39% Plastic moulding requires 4 operators and can produce 280,000 sprinklers Each operator can produce 70000 Machine requirements 2 2 2 4 Labor requirements 4 4 4 8 3 bronze machine is available and one injection moulding machine is avaialbale Additional bronze machine was purchased 4 bronze machines can produce 68000 Plastic moulding machine can produce 280000 Plastic capacity used = 96000/280000*100 = 34.29% in Year 1 280000-96000+280000 = 464000; so 109000/464000*100 = 23.49% in Year 2 and so on and so forth is calculated for Plastic and Bronze

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