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NEW MyOMLab with Pearson eText -- Access Card -- for Operations

Management (10th Edition)
Chapter 6, Problem 4P Bookmark Show all steps: ON
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Macon Controls produces three different types of control units used to protect industrial
equipment from overheating.

Each of these units must be processed by a machine that Macon considers to be their process CONTINUE TO POST
bottleneck. The plant operates on two 8-hour shifts, 5 days per week, 52 weeks per year. Table 1 20 questions remaining
provides the time standards at the bottleneck, lot sizes, and demand forecasts for the three units.
Because of demand uncertainties, the operations manager obtained three demand forecasts
(pessimistic, expected, and optimistic). The manager believes that a 20 percent capacity
cushion is best. My Textbook Solutions
Table 1

CAPACITY INFORMATION FOR MACON CONTROLS

TIME STANDARD DEMAND FORECAST

NEW Operations Operations

MyOMLab... Management Manageme
Processing Setup Lot Size 10th Edition 10th Edition 11th Edition

Component (hr/unit) (hr/lot) (units/lot) Pessimistic Expected Optimistic View all solutions

A 0.05 1.0 60 15,000 18,000 25,000 Chegg tutors who can help
right now
B 0.20 4.5 80 10,000 13,000 17,000
Meg
University of Penn… 517

C 0.05 8.2 120 17,000 25,000 40,000

Andrew
Washington Univer… 1342
a. How many machines are required to meet minimum (pessimistic) demand, expected demand,
and maximum (optimistic) demand?
Minah
Columbia University 128

b. How many machines are required if the operations manager decides to double lot sizes?
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c. If the operations manager has three machines and believes that the plant can reduce setup
time by 20 percent through process improvement initiatives, does that plant have adequate
capacity to meet all demand scenarios without increasing lot sizes?

Step-by-step solution

Step 1 of 5

Company MC produces three types of components including Component A, B and C. The

processing time, set up time, lot size, and demand forecast for all the three components are
given. Objective of the problem is to determine the number of machines required to meet
pessimistic, expected and optimistic demand.

Capacity requirement for multiple services or products is calculated using given formula:

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10/5/2017 Solved: Macon Controls produces three different types of contro... | Chegg.com

Where,

Q = number of units in each lot

S = set up time in hours per lot

Comment

Step 2 of 5

a.

Determine the number of machines required to meet pessimistic, expected and optimistic
demand using given values given values and formulas in excel spreadsheet:

The following values are obtained:

Hence, it is concluded that the number of machines required to meet pessimistic, expected and
optimistic demand are 2, 3 and 4, respectively.

Comment

http://www.chegg.com/homework-help/macon-controls-produces-three-different-types-control-units-chapter-6-problem-4p-solution-9780132940474-exc 2/5
10/5/2017 Solved: Macon Controls produces three different types of contro... | Chegg.com

Step 3 of 5

b.

Determine the number of machines when the operations manager doubles the lot sizes as
shown below:

The following values are obtained:

Hence, it is concluded that the number of machines required to meet pessimistic, expected and
optimistic demand are 2, 2 and 3, respectively.

Comment

Step 4 of 5

c.

The manager now reduces the setup time for each component by 20 percent. The new scenario
is as follows:

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10/5/2017 Solved: Macon Controls produces three different types of contro... | Chegg.com

Comment

Step 5 of 5

The following values are obtained:

Hence, it is concluded that if the plant has 3 machines and it is able to reduce the setup time by
20%, then it has the adequate capacity to meet all the demand scenarios.

Comment

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