Econ 201 N23-1

Problem 4-1 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: |

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YEARLY DEMAND | | 1 (IN 000s) | 2 (IN 000s) | 3 (IN 000s) | 4 (IN 000s) | Plastic 90 | 35 | | 41 | | 60 | | 59 | | Plastic 180 | 15 | | 17 | | 16 | | 20 | | Plastic 360 | 46 | | 60 | | 68 | | 69 | | Bronze 90 | 7 | | 7 | | 5 | | 13 | | Bronze 180 | 4 | | 4 | | 7 | | 8 | | Bronze 360 | 11 | | 12 | | 14 | | 20 | | |

Both production lines can produce all the different types of nozzles. The bronze machines needed for the bronze sprinklers require three operators and can produce up to 14,000 sprinklers. The plastic injection molding machine needed for the plastic sprinklers requires three operators and can produce up to 230,000 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.) (Enter the demand values in thousands. Round your answers to 2 decimal places.) |

| Year 1 | Year 2 | Year 3 | Year 4 | Plastic | | | | | Demand for plastic sprinklers | | | | | | | | | Percentage of capacity used | | % | | % | | % | | % | Machine requirements | | | | | | | | | Labor requirements | | | | | | | | | Bronze | | | | | Demand for bronze sprinklers | | | | | | | | | Percentage of capacity used | | % | | % | | % | | % | Machine requirements | | | | | | | | |