Up, Up, and Away is a producer of kites and wind socks. Relevant data on a bottleneck operation in the shop for the upcoming fiscal year are given in the following table: Item Demand forecast Lot size Standard processing time Standard setup time Kites 30,000 units/year 20 units 0.3 hour/unit 3.0 hours/lot Wind Socks 12,000 units/year 70 units 1.0 hour/unit 4.0 hours/lot The shop works two shifts per day, 8 hours per shift, 200 days per year. Currently, the company operates four machines, and desires a 25 percent capacity cushion. How many machines should be purchased to meet the upcoming year's demand without resorting to any short-term capacity solutions?
Up, Up, and Away is a producer of kites and wind socks. Relevant data on a bottleneck operation in the shop for the upcoming fiscal year are given in the following table: Item Demand forecast Lot size Standard processing time Standard setup time Kites 30,000 units/year 20 units 0.3 hour/unit 3.0 hours/lot Wind Socks 12,000 units/year 70 units 1.0 hour/unit 4.0 hours/lot The shop works two shifts per day, 8 hours per shift, 200 days per year. Currently, the company operates four machines, and desires a 25 percent capacity cushion. How many machines should be purchased to meet the upcoming year's demand without resorting to any short-term capacity solutions?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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