please answer within 30 minutes. AlwaysRain Irrigation, Inc. would like to determine capacity requirements for the next four years. Currently, two production lines are inplace for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzlesprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four yearsas follows:YEARLY DEMAND1 (IN 000S) 2 (IN 000s) 3 (IN 000s)4 (IN 000s)304151521214171750516270Plastic 90Plastic 180Plastic 360Bronze 90Bronze 180Bronze 3604511151341611101520Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers requiretwo operators and can produce up to 17,500 sprinklers. The plastic injection molding machine needed for the plastic sprinklersrequires four operators and can produce up to 310,000 sprinklers. Three bronze machines and only one injection molding machine areavailable.What are the capacity requirements for the next four years? (Assume that there is no learning.) (Enter the demand values inthousands. Round your answers to 2 decimal places.)

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Answered: AlwaysRain Irrigation, Inc. would like…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter5: Network Models

Section5.3: Assignment Models

Problem 10P

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AlwaysRain Irrigation, Incorporated would like to determine capacity requirements for the next four years. Currently two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows: YEARLY DEMAND 1 (IN 000s) 2 (IN 000s) 3 (IN 000s) 4 (IN 000s) Plastic 90 32 44 55 56 Plastic 180 15 16 17 18 Plastic 360 50 55 64 67 Bronze 90 7 8 9 10 Bronze 180 3 4 5 6 Bronze 360 11 12 15 18 Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. Three bronze machines and only one…
Spectrum Hair Salon is considering expanding itsbusiness, as it is experiencing a large growth. Th e question iswhether it should expand with a bigger facility than needed,hoping that demand will catch up, or with a small facility,knowing that it will need to reconsider expanding in three years.Th e management at Spectrum has estimated the followingchances for demand:• Th e likelihood of demand being high is 0.70.• Th e likelihood of demand being low is 0.30.Estimated profi ts for each alternative are as follows:• Large expansion has an estimated profi tability of either$100,000 or $70,000, depending on whether demand turnsout to be high or low.• Small expansion has a profi tability of $50,000, assuming thatdemand is low.• Small expansion with an occurrence of high demand wouldrequire considering whether to expand further. If thebusiness expands at this point, the profi tability is expected tobe $90,000. If it does not expand further, the profi tability isexpected to be $60,000.Draw a…
Spectrum Hair Salon is considering expanding itsbusiness, as it is experiencing a large growth. Th e question iswhether it should expand with a bigger facility than needed,hoping that demand will catch up, or with a small facility,knowing that it will need to reconsider expanding in three years.Th e management at Spectrum has estimated the followingchances for demand:• Th e likelihood of demand being high is 0.70.• Th e likelihood of demand being low is 0.30.Estimated profi ts for each alternative are as follows:• Large expansion has an estimated profi tability of either$100,000 or $70,000, depending on whether demand turnsout to be high or low.• Small expansion has a profi tability of $50,000, assuming thatdemand is low.• Small expansion with an occurrence of high demand wouldrequire considering whether to expand further. If thebusiness expands at this point, the profi tability is expected tobe $90,000. If it does not expand further, the profi tability isexpected to be $60,000.
Jerusalem Medical Ltd., an Israeli producer of portable kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) are forecast as follows: Capacity Source Month 1 Month 2 Month 3 Month 4 Labor Regular time 245 265 300 300 Overtime 15 24 26 22 Subcontract 14 15 13 15 Demand 260 304 331 305 The cost of producing each dialysis unit is $875 on regular time, $1310 on overtime, and $1500 on a subcontract. Inventory carrying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Minimizing cost using the transportation method, the optimal cost is ???$ (enter your response as a whole number).
14. Stephanie, the supply chain analyst of Nestle is asked to present an expansion plan for thecompany. The plan is either to construct a plant, open a distribution center, or do nothing. Fromthe plant construction, the company will gain 80,000Php if the market turns favorable, loss of10,000 if average, and loss of 50,000 if unfavorable. From opening a distribution center, thecompany will gain 40,000Php if favorable, gain 20,000Php if average, and loss of 30,000Php ifunfavorable. And if the decision is do nothing, the company will gain nothing regardless of themarket turnout. Then, he was able to determine further the probability of occurrence of eachtype of market. The probability of occurrence is 60%, 25%, and 40%, respectively. He also foundout that he can buy the information on what will really happen to the market for 2,000Php.a. What should be the analyst’s decision?b. How much gain or loss will he expect for the company?c. Should he buy the perfect information? Why or why not?d.…
Why is it important to balance production capacity with market demand? and provide a scenario examples.
A health centre specializes in the provision of sports/exercise and medical/dietary advice to clients. The service is provided on a residential basis and clients may stay for whatever number of days to suit their needs. Budgeted estimates for the year ending 30 June 2020 are as follows: (i) The maximum capacity of the centre is 50 clients per day for 350 days in a year. (ii) Clients will be invoiced at a fee per day. The budgeted occupancy level will vary with the client fee level per day and is estimated at different percentages of maximum capacity as follows: Client fee per day Occupancy level Occupancy as percentage of maximum capacity RM180 High 90% RM200 Most likely 75% RM220 Low 60% (iii) Variable costs are also estimated at one of three levels per client day. The high, most likely and low levels per client day are RM95, RM85 and RM70 respectively. The range of cost levels reflects only the possible effect of the purchase prices of goods…
1: Suppose the company has identified the following three possible demand scenarios: Demand (Units per year) Probability 25,000 0.3 60,000 0.4 100,000 0.3 1. If the capacity is set at 80,000, how much of a capacity cushion is here? What is the capacity utilization? 2. What is the probability of idle capacity if the capacity is 80,000? 3. If it costs $25 per units lost business and $50 to build a unit of capacity, how much capacity should be built to minimize total cost?
Given the capacity planning discussion in the text (see Figure S7.6 ), what approach is being taken by Arnold Palmer Hospital toward matching capacity to demand?
1) Specify Louis Vuitton main activities – while highlighting their nature from an operation management perspective for forecasting scheduling 2) Suggest a capacity enhancement factor (how can Louis Vuitton’s capacity be enhanced?
A manager is attempting to put together an aggregate production plan for the coming nine months. She has obtained forecasts of aggregate demand for the planning horizon. The plan must deal with highly seasonal demand; demand is relatively high in months 3 and 4, and again in month 8, as can be seen below: The company has 20 permanent employees, each of whom can produce 10 units of output per month at a cost of $6 per unit. Inventory holding cost is $5 per unit per month, and back-order cost is $10 per unit per month. The manager is considering a plan that would involve hiring two people to start working in month 1, one on a temporary basis who would work until the end of month 5. The hiring of these two would cost $500. Beginning inventory is 0.Start with 20 permanent workers. Prepare a minimum cost plan that may use some combination of hiring ($250 per worker), subcontracting ($8 per unit, maximum of 20 units per month, must use for at least three consecutive months), and overtime…
Jerusalem Medical Ltd., an Israeli producer of port-able kidney dialysis units and other medical products, develops a 4-month aggregate plan. Demand and capacity (in units) areforecast as follows:CAPACITYSOURCE MONTH 1 MONTH 2 MONTH 3 MONTH 4LaborRegular time 235 255 290 300Overtime 20 24 26 24Subcontract 12 15 15 17Demand 255 294 321 301The cost of producing each dialysis unit is $985 on regular time, $1,310 on overtime, and $1,500 on a subcontract. Inventory car-rying cost is $100 per unit per month. There is to be no beginning or ending inventory in stock and backorders are not permitted. Set up a production plan that minimizes cost using the transpor-tation method.

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