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Question 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:

Both production lines can produce all the different types of nozzles. The bronze machines
needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers.
The plastic injection molding machine needed for the plastic sprinklers requires four operators
and can produce up to 200,000 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.)

Question 2:

Expando, Inc., is considering the possibility of building an additional factory that would
produce a new addition to its product line. The company is currently considering two options.
The first is a small facility that it could build at a cost of $6 million. If demand for new
products is low, the company expects to receive $10 million in discounted revenues (present
value of future revenues) with the small facility. On the other hand, if demand is high, it
expects $12 million in discounted revenues using small facility. The second option is to build
a large factory at a cost of $9 million. Were demand to be low, the company would expect $10
million in discounted revenue with the large plant. If deman is high, the company estimates
that the discounted revenues would be $14 million. In either case, the probability of demand
being high is 0.40, and the probability of being low is 0.60. Not constructing a new factory
would result in no additional revenue being generated because the current factories cannot
produce these new products. Construct a decision tree to help Expando make the best
decision.

Question 3:

Francis Johnsons plant needs to design an efficient assembly line to make a new product. The
assembly line needs to produce 15 units per hour, and there is room for only four workstations
the tasks and the order in which they must be performed are shown in the following table Tasks
cannot be split, and it would be too expensive to duplicate any task.

a.

Draw the precedence diagram.


b. What is the workstation cycle time required to produce 15 units per hour?
c. Balance the line so that only four workstations are required. Use whatever method you
feel is appropriate.
d. What is the efficiency of your line balance