Explanations 
Textbooks 
Flashcards 
91影视 AI 
Notes 
Study Plans 
Study Sets 
Find a degree 
Magazine Chapter 1: Q5OQ (page 125)
Suppose that Always Rain Irrigation鈥檚 marketing department will undertake an intense ad campaign for the bronze sprinklers, which are more expensive but also more durable than the plastic ones. Forecast demand for the next four years is
Yearly Demand | ||||
1 (IN 000s) | 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 | 11 | 15 | 18 | 23 |
Bronze 180 | 6 | 5 | 6 | 9 |
Bronze 360 | 15 | 16 | 17 | 20 |
What are the capacity implications of the marketing campaign (assume no learning)?
Short Answer
The number of machines required to keep up with the growth of bronze units is still insufficient, and the labour requirements for each machine are greater than the total work of two operators.
Step by step solution
Calculation of total capacity of bronze and plastic
As given of plastic machine
Machine requirement (Plastic) = 4
Capacity used (Plastic) = 200,000 sprinklers
Machine (Plastic) = 1
Hence,
Total capacity = Plastic machine x Plastic capacity
= 1 x 200,000
= 200,000
Now of the bronze machine,
Machine requirement (bronze) = 2
Capacity used (bronze) = 12,000 sprinklers
Machine (bronze) = 3
Hence,
Total capacity = Plastic machine x Plastic capacity
= 3 x 12,000
= 36,000
The capacity implications of the marketing campaign
For plastic,
Percentage of capacity used:
Potential output in a given period of time = Total capacity / 1000 (as per given)
Where,
Total capacity is 2, 00,000
Potential output in given output = 2, 00, 00 / 1000
= 200
For bronze,
Percentageof capacity used:
Potential output in a given period of time = Total capacity / 1000 (as per given)
Where,
Total capacity = 3 x 12, 000
= 36,000
Potential output in given output = 36,000 / 1000
= 36
Bronze | 1 Year | 2 Year | 3 Year | 4 Year |
Bronze units demand (000s) | 11+6+15 = 42 | 15+5+16= 36 | 18+6+17 = 41 | 23 +9+20 = 52 |
Capacity used (%) | 42 / 36 = 11.6% | 36 / 36 = 100% | 41 / 36 = 11.4% | 52/ 36 = 14.4% |
Total requirement (Machine) | 3 x 1.16 = 3.48 | 3 x 1 = 3 | 3 x 1.14 = 3.42 | 3 x 1.44= 4.32 |
Total requirement ( Labour) | 2 x 3.48 = 6.96 | 2 x 3 = 6 | 2 x 3.42 = 6.84 | 2 x 4.32 = 8.64 |
Over 30 million students worldwide already upgrade their learning with 91影视!
