4-Capacity planning methods

The Smith logistics company distributes pharmaceutical products to 5 suburban storages around Boston. MA. The material are transported and delivered to storages in special containers (2'x 3'x2.5') on a monthly basis. The volume of deliveries for year 2019 is shown in Table 1.

Table 1 monthly shipments ft³

month

Delivery storage 1-

2019

5

1

2550 ft³

2

1800 ""

3

3450 ""

4

3360 ""

5

1210 ""

6

3945 ""

7

1950 ""

8

3620 ""

9

1540""

10

1280""

11

4270 ""

12

2250""

The material stay in the distribution warehouse about 3 days and past experience shows that on the average (because of stacking, aisles and others) each box occupies about 5.8ft2of space in the warehouse. Use Rough Cut Capacity Planning to determine the size of the warehouse needed which will minimize stock oversupply or undersupply, under each of the following conditions(1).

a)-Company want to use a fixed capacity(one size building for warehouse)

b)-If company wants to use Equal number of containers to ship each month

c)-If handling, dispatching, loading unloading and other work in the warehouse need 0.12 hours of labor work per container, determine the size of the labor force required.

Assumptions: Use7.5hrsof work/day, 7days/week and 30 days/month--------------------------------------------------------------------------------------

(1). Provide a graphical representation of your results