Question: Chapter 4: Problem 1 Is there enough capacity to meet the demand over the next four years? How do you know? Is there a point

Chapter 4: Problem 1 Is there enough capacity to

Chapter 4: Problem 1 Is there enough capacity to meet the demand over the next four years? How do you know? Is there a point of concern that may be approaching? Why do you say that? 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-degreenozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows: (Ctrl) - 1 (in 000s) 2(in 000s) 3(in 000s) 4(in 000s) Plastic 90 Plastic 180 Plastic 360 Bronze 90 Bronze 180 Bronze 360 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) Total bronze machines at 12,000 units each = 3 x 12,000 = 36,000 bronze units available to be made each year. There are 200,000 plastic units that can be made each year, so over 4 years production = 200,000 X 4 = 800,000 total units. Breaking this problem down by each year to see if there is enough capacity to handle the projected demand we could use a table or a spreadsheet. PLASTIC Year 1 Year 2 Demand for Plastic Units (000s % of capacity used Machine requirements totall Labor requirements (total) Year 1 Year 2 Year 3 Year 4 BRONZE Demand for Bronze Units (000s) % of capacity used Machine requirements Labor rec

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