Knott's has enough capacity to satisfy the yearly demand since it only needs 4 machines, all of which are owned by Knott's.
Number of hours per machine available = Number of days in a year* hours per day
The number of hours per machine that are available at full capacity = 275 * 8 = 2200 hours.
20% after the capacity cushion
Total capacity is 2200 * (1%–20%), which is 1760 hours.
The time needed for the Standard model:
The average lot size divided by yearly demand is 20000/50, or 400 lots.
Total production time is equal to 400 times setup time plus 20,000 times processing time, or 400 * 30 + 20,000 * 5.
Total manufacturing time each year is 112000 minutes or 1866.67 hours.
Super Premium model needed hours:
Annual demand divided by average lot size is 10000/30, which equals 333.33 lots or 334 lots.
Total manufacturing time is equal to 334*45 + 10,000*25, which is 265030 min, or 4417.167 hr.
Thus, The total hours needed to satisfy demand are 1866.67 + 4417.167, which comes to 6283.83 hours.
The required number of machines is equal to 3.57 machines (6283.83 / 1760).
As a result, Knott's has enough capacity to satisfy the yearly demand since it only needs 4 machines, all of which are owned by Knott's.
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CQ
Knott's Industries manufactures standard and super premium backyard swing sets. Currently it has four identicalswing-set-making machines, which are operated 275 days per year and 8 hours each day. A capacity cushion of 20 percent is desired. The following information is alsoknown:
Standard Model
Super Premium Model
Annual Demand
20,000
10,000
Standard Processing Time
5 min
25min
Average Lot Size
50
30
Standard Setup Time per Lot
30 min
45 min
a. Does Knott's have sufficient capacity to meet annualdemand?
Knott's ▼(does not, does) have sufficient capacity to meet annual demand because __machines are needed.
