Knott’s Industries manufactures standard and superpremium backyard swing sets. Currently it has four identi-cal swing-set-making machines, which are operated 250days per year and 8 hours each day. A capacity cushionof 20 percent is desired. The following information is alsoknown:Standard ModelSuper PremiumModelAnnual Demand 20,000 10,000Standard Processing Time 7 min 20 minAverage Lot Size 50 30Standard Setup Time per Lot 30 min 45 mina. Does Knott’s have sufficient capacity to meet annualdemand?b. If Knott’s was able to reduce the setup time for the SuperPremium Model from 45 minutes to 30 minutes, wouldthere be enough current capacity to produce 20,000 unitsof each type of swing set?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter12: Queueing Models
Section: Chapter Questions
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Knott’s Industries manufactures standard and super
premium backyard swing sets. Currently it has four identi-
cal 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 Premium
Model
Annual Demand 20,000 10,000
Standard Processing Time 7 min 20 min
Average Lot Size 50 30
Standard Setup Time per Lot 30 min 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?

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