Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3- Wrigley Company produces two new brands of Orbit gum, Orbit White and Orbit for Kids. Each is available in plastic bottles and cardboard boxes.

image text in transcribed
image text in transcribed
3- Wrigley Company produces two new brands of Orbit gum, Orbit White and Orbit for Kids. Each is available in plastic bottles and cardboard boxes. Management would like to determine yearly equipment and labor requirements for the manufacturing equipment used to produce these products for the next five years. The demand for the two brands and for cach packaging option is given in the table below. Year 2 3 4 5 Orbit White Plastic bottles (000s) 75 100 150 200 230 95 180 290 410 460 Cardboard boxes (000s) Orbit for Kids Plastic bottles (000s) Cardboard boxes (000s) 70 80 95 100 105 170 330 520 610 630 The gum is packaged in a special area of the plant that is dedicated to the production of these two brands. The company has seven machines in the area. Three machines are available to fill the plastic bottles of gum, and four are used to package the cardboard boxes. The three bottling machines can each produce 135000 bottles each year and each machine requires three operators when running. The four machines used to make the cardboard box can each produce 300000 boxes per year and each machine requires three operators when running. These capacity numbers have been adjusted for expected downtime and quality problems. Currently, the company has 8 bottling machine operators and 14 cardboard box machine operators trained. When these operators are not needed to produce the gum, they can be used in other parts of the plant Find the company's yearly capacity (machines and operators) to meet future demand. (20 points) Forecasts by Product Orbit White Plastic bottles (000s) Cardboard boxes (000s) Orbit for Kids Plastic bottles (000s) Cardboard boxes (000s) Forecast by Bottle/Box Plastic bottles (000s) Cardboard boxes (000s) 1 75 95 70 170 1 2 100 180 80 330 2 Year 3 150 290 95 520 3 4 200 410 100 610 4 5 230 460 105 630 5 Plastic bottles Cardboard boxes Capacity per machine Machines available Required workers per machine Available workers Year 3 2 5 Cardboard box Operation Percentage capacity utilized Machine requirement Labor requirement Plastic Bottle Operation Percentage capacity utilized Machine requirement Labor requirement

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Pioneers Of A Profession Chartered Accountants To 1879

Authors: Jas. C. Stewart

1st Edition

0367532557, 9780367532550

More Books

Students also viewed these Accounting questions

Question

17 Answered: 1 week ago

Answered: 1 week ago

Question

What are employee assistance programs and wellness programs?

Answered: 1 week ago