WAI uses two resources for each product that it builds: direct labor and machine time. From historical

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WAI uses two resources for each product that it builds: direct labor and machine time. From historical records,WAI calculates the following planning factors:

Direct labor for standard corkscrew is 0.20 hour.
Direct labor for deluxe corkscrew is 0.50 hour.
Machine time for standard corkscrew is 0.10 hour.
Machine time for deluxe corkscrew is 0.30 hour.

Calculate the capacity needed for the MPS developed in Problem 4.

Data From Problem 4:

Wine Accessories Inc. (WAI) produces two models of corkscrews, the standard model and a deluxe model.WAI follows a level aggregate plan, producing 20,000 corkscrews per month, or 5000 corkscrews per week. The MPS is developed in weekly time periods. The forecasts for each model and the projected available are shown in the next two tables. The replenishment order quantity is 2000 units for the standard model and 1000 units for the deluxe model. Note that you can place multiple orders if a single order is insufficient to cover the forecast (you can produce 4000 units of the standard model if necessary, or 2000 or 3000 units of the deluxe model). Remember that total weekly production is limited to 5000 corkscrews. Develop an MPS for each of the products.

                                    

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Related Book For  book-img-for-question

Operations Management

ISBN: 978-0470325049

4th edition

Authors: R. Dan Reid, Nada R. Sanders

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