Question: Please do the second part only. Prof Mathien has started a new business, and she forecasts the following demand for her product (in thousands of

Please do the second part only." Prof Mathien has started a new business, and she forecasts the following demand for her product (in thousands of units) over the next 5 years:"

Directions: Show ALL work. Solve each part of the below problem. Bring work to class via hard copy on due date and submit a copy or picture to the appropriate drop box on Blackboard by the due date/time.

1) A dental office has a mix of procedures and each requires a set up time (like a job shop). Assume the following for a dentist:

  • 9-hour day with 1 hour total for lunch/breaks
  • Dentist does all work, including cleaning and setting up
  • Set up and processing times shown below
  • Set up performed for every patient because thats gross if they dont use clean equipment!

Procedure

# Appts

Setup or changeover time (minutes)

Processing time (minutes)

Demand (# patients scheduled)

Total setup time

Total processing time

Total setup and processing time)

Crown

1st

2nd

15

10

90

30

2

1

Whiten

1st

5

30

4

Denture

1st

2nd

3rd

20

10

5

30

20

30

3

0

2

  • Complete the empty columns in the chart above. (3 points)
  • Is there sufficient capacity to perform all the work? What is the amount of either excess capacity or shortage? (2 points)
  • What percent of the dentists capacity (available total time) is used to set up and changeover from one procedure to another? (1 point)
  • If setup times could be reduced by 50%, what would new total set up time be? What would the capacity shortage/overage be? (2 points)

2) Prof Mathien has started a new business, and she forecasts the following demand for her product (in thousands of units) over the next 5 years:

Year

1

2

3

4

5

Forecasted Demand

60

79

81

84

84

She currently has 7 machines that operate on a 2-shift basis (8 hours per shift). 20 days are available for scheduled maintenance (downtime) with no product output. Assume there are 250 workdays per year. Each product takes 25 minutes to produce.

  • What is the capacity of the business? (1 point)
  • At what capacity level (% of normal capacity) would her business be operating for each of the next 5 years based on forecasted demand? (HINT: Compute the ratio of demand to capacity per year.) (5 points)
  • Does Prof Mathien need to buy more machines? If so, how many and in what year? Justify your answer/explain. (3 points)

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