(a)
Plastic Machines
Production = 300000
There is just one machine available.
Available capacity per year = 300000
Required operators = 4 per machine
Bronze Machines
Production = 18000
They are 3 machines available
Total production =3 *18000 = 54000
Required operators = 3 per machine
Formulas
used:
% of capacity used = (Demand /Capacity) * 100
Machine requirements = (Demand/Capacity of a single machine)
Labor requirements = Machine requirements * No of operators
required per machine
Plastic |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Demand (000's) |
97 |
108 |
132 |
132 |
Capacity (000's) |
300 |
300 |
300 |
300 |
% of
capacity used |
32.33% |
36.00% |
44.00% |
44.00% |
Machine
requirement |
0.323 |
0.360 |
0.440 |
0.440 |
Labor
requirements |
1.293 |
1.440 |
1.760 |
1.760 |
Bronze |
Year
1 |
Year
2 |
Year
3 |
Year
4 |
Demand (000's) |
18 |
20 |
21 |
50 |
Capacity (000's) |
54 |
54 |
54 |
54 |
% of
capacity used |
33.33% |
37.04% |
38.89% |
92.59% |
Machine
requirement |
0.333 |
0.370 |
0.389 |
0.926 |
Labor
requirements |
1.000 |
1.111 |
1.167 |
2.778 |
(b) There is sufficient capacity to meet the demand over the
next 4 years.