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:
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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
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 injection molding machine are available.
What are the capacity requirements for the next four years? (Assume that there is no learning.)
Note: Enter the demand values in thousands. Round your answers to 2 decimal places.
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- Always Rain Irrigation, Inc., would like to determine capacity requirements for the next four years to make three types of bronze sprinklers: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next 4 years as follows: Yearly Demand in 000's: Year 1, Year 2, Year 3, Year 4: Bronze 90: 7, 8, 9, 10 Bronze 190: 3, 4, 5, 6 Bronze 360: 11, 12, 15, 18 The machines needed for the bronze sprinklers require two operators, and can produce up to 12,000 sprinklers. Three bronze machines and only one injection molding machine are available. What are the capacity requirements for the next four years, assume that there is no learning? Capacity: Year 1, Year 2, Year 3, Year 4: Demand for bronze sprinklers: Percentage of capacity used: Machine requirements: Labor requirements: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).. Botany weaving was established in 1934 in Dublin Ireland and it is now an approvedsupplier of fabrics for both Boeing and Airbus. They operate 3 plants in Europe to supplytheir 2 major airline customers and these plants are located in Ireland, UK and Italy. Theyhave to decide where to manufacture the two newest high-tech fabrics: Nano Seat Fabricsand Ultra Curtains. Each plant has a different variable cost structure and capacity formanufacturing the different products. Also, each product has an expected demand. CostPlan Plant Capacity Nano Seat Fabrics Ultra curtains Ireland 6000 31€ 28.5€UK 5300 32.5€ 30.5€Italy 5000 35€ 29.5€Demand…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.
- As public awareness of the need to recycle, reuse and repair has grown, TerraCycle has found that it has needed to create more recycling centres around the country to meet the new demand. 1. Identify two points of time throughout a one-year period where the capacity of the TerraCycle Recycling Centres will exceed their normal operations capacity and explain why there is an increase in demand during these periods. 2. Discuss at least three different approaches to managing capacity about TerraCycle and the challenges which each approach may face. 3. Recommend one action based on your analysis of TerraCycle to improve capacity management and explain how this could be implemented and monitored in the long run.Carson Trucking is considering whether to expand its regional service center in Mohab, UT. The expansion requires the expenditure of $10,000,000 on new service equipment and would generate annual net cash inflows from reduced costs of operations equal to $2,500,000 per year for each of the next 8 years. In year 8 the firm will also get back a cash flow equal to the salvage value of the equipment, which is valued at $1 million. Thus, in year 8 the investment cash inflow totals $3, 500, 000. Calculate the project's NPV using a discount rate of 9 percent.SOLVE USING EXCEL Metal Fabricators, Inc. manufactures gas grill tanks, Model # 1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1 = 2,800 tanks, Quarter 2 = 3,400, Quarter 3 = 3,600, and Quarter 4 = 2,900. Due to a hedging program for sheet steel and increases in international tariffs, production cost per quarter vary as follows: Quarter 1 = $23.50 per tank, Quarter 2 = $28.00, Quarter 3 = $25.90, and Quarter 4 = $29.00. Due to production contracts with the OEMs, no shortages are allowed. Beginning inventory for Quarter 1 is 300 tanks. At the end of each quarter, inventory holding costs are $4.25 per tank. a. Formulate the problem as a linear programming model (see Supplement D). b. Solve the model in (a) using Excel Solver.
- Northwest Pipe (NP) makes water pipe. NP is planningproduction for the next seven months, March through September.Th e forecast demands (in thousands of feet) are, respectively, 40,60, 70, 80, 90, 100, and 80. NP can make 75,000 feet of pipe permonth using regular-time production, at a cost of $1.25 per foot.Th ey can make up to an additional 15,000 feet using overtimeproduction at a cost of $1.50 per foot. Any pipe made in onemonth and sold in a later month incurs an inventory holding costof $0.15 per foot, per month. NP expects to end February with5000 feet of pipe and would like to plan to end September with10,000 feet in inventory. NP would like to plan their productionschedule to minimize total cost during the next seven months. (a) Formulate an LP to minimize total costs.(b) Set up and solve the problem on a spreadsheet.(c) What is the optimal solution? Explain the rationale for thesolutionA 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…the gulf coast foundry is developing a long range strategic plan for buying scarp metal for its foundry oprations the foundry can buy scrap metal in unlimited quantities from two sources, Atlanta(A) and Birmingham (B), and it receives the scrap daily in railroad cars. the scrap is melted down, and lead lead and copper are extracted for use in the foundry processes each railroad car of scrap from source A yields 1 ton of copper and 1 ton of lead and cost $10,000. each railroad car of scrap from source B yields 1 ton of copper and 2 tons of lead and costs $15,000, if the foundry needs at least 2 and a half tons of copper and at least 4 tons of lead per day for the foreseeable future, how many railroad cars of scrap should be ( purchased per day from source A and source B to minimize the long range scrap metal cost?