Suppose that AlwaysRain Irrigation’s marketing department will undertake an intense ad campaign for the bronze sprinklers, which are more expensive but also more durable than the plastic ones. Forecast demand for the next four years is:   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 11 15 18 23 Bronze 180 6 5 6 9 Bronze 360 15 16 17 20 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. Required: What are the capacity implications of the marketing campaign? (Assume that there is no learning.) In anticipation of the ad campaign, AlwaysRain bought an additional bronze machine. Will this be enough to ensure that adequate capacity is available? Suppose that operators have enough training to operate both the bronze machines and the injection molding machine for the plastic sprinklers. Currently, AlwaysRain has 10 such employees. In anticipation of the ad campaign, management approved the purchase of two additional bronze machines. What are the labor requirement implications?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
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Suppose that AlwaysRain Irrigation’s marketing department will undertake an intense ad campaign for the bronze sprinklers, which are more expensive but also more durable than the plastic ones. Forecast demand for the next four years is:

  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 11 15 18 23
Bronze 180 6 5 6 9
Bronze 360 15 16 17 20

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.

Required:

  1. What are the capacity implications of the marketing campaign? (Assume that there is no learning.)

  2. In anticipation of the ad campaign, AlwaysRain bought an additional bronze machine. Will this be enough to ensure that adequate capacity is available?

  3. Suppose that operators have enough training to operate both the bronze machines and the injection molding machine for the plastic sprinklers. Currently, AlwaysRain has 10 such employees. In anticipation of the ad campaign, management approved the purchase of two additional bronze machines. What are the labor requirement implications?

     
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