You have been asked to put together a capacity plan for the LongLegs Shoe Company. Your capacity measure is number of machines.Three products (men’s, women’s, and children’s shoes aremanufactured. The time standards (processing and setup), lot sizes,and demand forecasts are given in the following table. The firmoperates two 8-hour shifts, 5 days per week, 50 weeks per year.Experience shows that a capacity cushion of 5 percent issufficient.
TIME STANDARDS
Product-------------- Processing (hr/pair) ---------Setup (hr/pair) -------- Lot Size (pairs/lot) ---------- DemandForecast (pairs/yr)
Men’s sandals ----- 0.05 -------------------------------- 0.5------------------------ 240 -------------------------------80,000
Women’s sandals - 0.10 ------------------------------- 2.2------------------------ 180 -------------------------------60,000
Children’s sandals - 0.02 ------------------------------ 3.8------------------------ 360 -------------------------------120,000
a. How many machines are needed?
b. If the operation currently has two machines, what is thecapacity gap?
