Question: I need solutions for these please! 2. [45%] KNE is a manufacturer of coffee machines. It currently manufac- tures four coffee makers using the same
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I need solutions for these please!
2. [45%] KNE is a manufacturer of coffee machines. It currently manufac- tures four coffee makers using the same workstations and workforce. KNE is developing its capacity plan for the upcoming year, and has determined the following projected demand and production data: Demand Batch Setup Size Time Processing Profit Time $/unit Product (units/year) (units) (hrs/batch) (min/unit) single-cup 88,000 2000 4 3 $33 5-cup 56,000 2000 3 3 $30 12-cup 94,000 2000 5 3 $45 espresso 36,000 2000 7 6 $72 The manufacturing facility currently operates 8 hours a day, 5 days a week and 50 weeks per year. Management has decided a capacity cushion of 20% is desirable. (a) What is the total manufacturing time required to meet the single-cup coffee maker demand? (b) What is the total manufacturing time required to meet the 5-cup coffee maker demand? (c) What is the total manufacturing time required to meet the 12-cup coffee maker demand? (d) What is the total manufacturing time required to meet the espresso ma- chine demand? (e) Given the current capacity cushion, what is the manufacturing time avail- able per workstation? (f) How many manufacturing workstations are needed to meet the total pro- jected demand? (g) Calculate the workstation profit productivity ($ of profit per hour of workstation time) for each product. Which product has the lowest pro- ductivity? (h) KNE currently operates 8 of the required workstations. A new worksta- tion costs approximately $450,000 to commission. Should KNE acquire new workstations? If so, how many? Evaluate the cost of your choiceStep by Step Solution
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