Reference no: EM131154197

Question 1:

AlwaysRain Irrigation, Inc. would like to determine capacity requirements for the next four years. Currently two production lines are in place for making bronze and plastic sprinklers. Three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. Management has forecast demand for the next four years as follows:

	1 (in 000s)	Yearly Demand 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	7	8	9	10
Bronze 180	3	4	5	6
Bronze 360	11	12	15	18

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. What are the capacity requirements for the next four years? (Assume that there is no learning.)

Question 2:

Expando, Inc., is considering the possibility of building an additional factory that would produce a new addition to its product line. The company is currently considering two options. The first is a small facility that it could build at a cost of $6 million. If demand for new products is low, the company expects to receive $10 million in discounted revenues (present value of future revenues) with the small facility. On the other hand, if demand is high, it expects $12 million in discounted revenues using small facility. The second option is to build a large factory at a cost of $9 million. Were demand to be low, the company would expect $10 million in discounted revenue with the large plant. If deman is high, the company estimates that the discounted revenues would be $14 million. In either case, the probability of demand being high is 0.40, and the probability of being low is 0.60. Not constructing a new factory would result in no additional revenue being generated because the current factories cannot produce these new products. Construct a decision tree to help Expando make the best decision.

Question 3:

Francis Johnson's plant needs to design an efficient assembly line to make a new product. The assembly line needs to produce 15 units per hour, and there is room for only four workstations the tasks and the order in which they must be performed are shown in the following table Tasks cannot be split, and it would be too expensive to duplicate any task.

Task	Task Time(Minutes)	Immediate Predecessor
A	1	-
B	2	-
C	3	-
D	1	A, B,C
E	3	C
F	2	E
G	3	E

a. Draw the precedence diagram.

b. What is the workstation cycle time required to produce 15 units per hour?

c. Balance the line so that only four workstations are required. Use whatever method you feel is appropriate.

d. What is the efficiency of your line balance