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Heinz produces ketchup in two sizes 16 Fl Oz and 32 Fl Oz. Management would like to determine equipment and labor requirements for the
Heinz produces ketchup in two sizes 16 Fl Oz and 32 Fl Oz. Management would like to determine equipment and labor requirements for the next five (5) years. The predicted demand for individual products within each product line is given below: Year 2 Year 3 20 30 40 60 16 Fl Oz (Millions) 32 Fl Oz (Millions) Year 1 12 20 Year 4 40 80 Year 5 50 100 The company plans on investing in three (3) machines and each can package up to 20 million 16 Fl Oz bottles per year. Each machine requires 4 operators. Also, the company plans on investing in two (2) machines and each can package up to 75 million 32 Fl Oz bottles per year. Each machine requires 5 operators. 1. What is the percentage capacity utilized in Year 2 for 16 Fl Oz bottling machine? 2. What is the machine requirement for Year 3 for 16 Fl Oz bottling machine? 3. What is the labor requirement for Year 4 for 32 Fl Oz bottling machine? 4. What is the machine requirement for Year 5 of 32 Fl Oz bottling machine? 5. What is the labor requirement for Year 1 of 16 Fl Oz bottling machine?
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