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
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. 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 eet the upcoming year's demand without resorting to
any short-term capacity solutions?
Transcribed Image Text:. 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 eet the upcoming year's demand without resorting to any short-term capacity solutions?
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