02.08.2022 - 19:33

Macon Controls produces three different types of control units used to predict industrial equipment from overheating. Each of these units must be processed by a machine that Macon considers to be thei

Question:

Macon Controls produces three different types of control units used to predict industrial equipment from overheating. Each of these units must be processed by a machine that Macon considers to be their process bottleneck. The plant operates on two 8-hour shifts, 5 days per week, 52 weeks per year. The table below provides the time standards at the bottleneck, lot sizes, and demand forecast for the three units. Because of demand uncertainties, the operations manager obtained three demand forecasts (pessimistic, expected, and opportunistic). The manager believes that a 30 percent capacity cushion is best.

Componet Time Standard Lot Size (units/lot) Demand Forecast
Processing (hr/unit) Setup (hr/lot) pessimistic expected optimistic
A 0.05 1.0 40 16,000 16,000 25,000
B 0.30 4.2 74 11,000 12,000 17,000
C 0.05 8.4 100 16,000 23,000 37,000

How many machines are required to meet the minimum (Pessimistic) demand, expected demand, and maximum (optimistic) demand?

Demand Forescast Capacity Requirement (M)
Pessimistic
Expected
Optimisitic
Answers (1)
  • Inez
    April 4, 2023 в 19:29
    To determine the number of machines required to meet the minimum (pessimistic) demand, expected demand, and maximum (optimistic) demand, we need to calculate the capacity requirements for each demand level. Capacity Requirement (M) = (Processing Time x Lot Size x Demand Forecast) + (Setup Time x Number of Lot Setups) Using the table provided, and assuming a 30 percent capacity cushion, we can calculate the capacity requirements for each demand level: Pessimistic Demand: For Component A: (0.05 x 40 x 16,000) + (1.0 x (16,000/40)) = 3,240 hours For Component B: (0.30 x 74 x 11,000) + (4.2 x (11,000/74)) = 10,157 hours For Component C: (0.05 x 100 x 16,000) + (8.4 x (16,000/100)) = 2,368 hours Total Capacity Requirement: 15,765 hours Capacity Requirement with 30% cushion: 20,475 hours Number of Machines Required: 3 (assuming 8-hour shift) Expected Demand: For Component A: (0.05 x 40 x 16,000) + (1.0 x (16,000/40)) = 3,240 hours For Component B: (0.30 x 74 x 12,000) + (4.2 x (12,000/74)) = 11,150 hours For Component C: (0.05 x 100 x 23,000) + (8.4 x (23,000/100)) = 4,172 hours Total Capacity Requirement: 18,562 hours Capacity Requirement with 30% cushion: 24,134 hours Number of Machines Required: 3 (assuming 8-hour shift) Optimistic Demand: For Component A: (0.05 x 40 x 25,000) + (1.0 x (25,000/40)) = 4,365 hours For Component B: (0.30 x 74 x 17,000) + (4.2 x (17,000/74)) = 13,892 hours For Component C: (0.05 x 100 x 37,000) + (8.4 x (37,000/100)) = 9,602 hours Total Capacity Requirement: 27,859 hours Capacity Requirement with 30% cushion: 36,120 hours Number of Machines Required: 5 (assuming 8-hour shift) Therefore, to meet the minimum (pessimistic) demand, the company would need 3 machines; to meet the expected demand, the company would also need 3 machines; and to meet the maximum (optimistic) demand, the company would need 5 machines.
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