Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Chapter 5, Problem 11P
Summary Introduction
Interpretation: Type of capacity assumes ideal operating conditions.
Concept Introduction:
Design capacity represents the theoretical capacity of a system. The design capacity is the maximum output that the system was built to produce. It is the capacity of the system that works under perfect working conditions.
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Flow and waiting time through a process are affected by seasonal fluctuation in demand. What does this mean? If a corporation wants to limit the impact of this fluctuation, what steps can it take?
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Knott’s Industries manufactures standard and super premium backyard swing sets. Currently it has four identical swing-set-making machines, which are operated 250 days per year and 8 hours each day. A capacity cushion of 20 percent is desired. The following information is also known:
Standard Model
Super PremiumModel
Annual Demand
Standard Processing Time
Average Lot Size
Standard Setup Time per Lot
20,000
7 min
50
30 min
10,000
20 min
30
45 min
a. Does Knott’s have sufficient capacity to meet annual demand?b. If Knott’s was able to reduce the setup time for the Super Premium Model from 45 minutes to 30 minutes, would there be enough current capacity to produce 20,000 units of each type of swing set?
Chapter 5 Solutions
Practical Operations Management
Ch. 5 - Prob. 1DQCh. 5 - Prob. 2DQCh. 5 - Prob. 3DQCh. 5 - Prob. 4DQCh. 5 - Prob. 5DQCh. 5 - Prob. 6DQCh. 5 - Prob. 7DQCh. 5 - Prob. 1PCh. 5 - Prob. 2PCh. 5 - Prob. 3P
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