You have been asked to put together a capacity plan for a critical operation at the Surefoot Sandal Com- pany. Your capacity measure is number of machines. Three products (men’s, women’s, and children’s sandals) are manufactured. The time standards (processing and setup), lot sizes, and demand forecasts are given in the following table. The firm operates two 8-hour shifts, 5 days per week, 50 weeks per year. Experience shows that a capacity cushion of 5 percent is sufficient a. How many machines are needed? b. If the operation currently has two machines, what is the capacity gap?
You have been asked to put together a capacity plan for a critical operation at the Surefoot Sandal Com- pany. Your capacity measure is number of machines. Three products (men’s, women’s, and children’s sandals) are manufactured. The time standards (processing and setup), lot sizes, and demand forecasts are given in the following table. The firm operates two 8-hour shifts, 5 days per week, 50 weeks per year. Experience shows that a capacity cushion of 5 percent is sufficient a. How many machines are needed? b. If the operation currently has two machines, what is the capacity gap?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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You have been asked to put together a capacity plan for a critical operation at the Surefoot Sandal Com-
pany. Your capacity measure is number of machines. Three products (men’s, women’s, and children’s
sandals) are manufactured. The time standards (processing and setup), lot sizes, and demand forecasts
are given in the following table. The firm operates two 8-hour shifts, 5 days per week, 50 weeks per year.
Experience shows that a capacity cushion of 5 percent is sufficient
a. How many machines are needed?
b. If the operation currently has two machines, what is the capacity gap?
Transcribed Image Text:TIME STANDARDS
Product
Processing (hr/pair)
Setup (hr/pair)
Lot Size (pairs/lot)
Demand Forecast (pairs/yr)
Men's sandals
0.05
0.5
240
80,000
Women's sandals
0.10
2.2
180
60,000
Children's sandals
0.02
3.8
360
120,000
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