Problem 1 - Capacity

Carefree Enterprises produces glamour sunglasses for the modern traveler. There is one machine that heats and bends the main component to provide the 'wrap-around' look. The machine is capable of bending 50 total glasses an hour. The plant operates one 12-hour shift a day six days each week. The plant is closed eight days for holidays and five for vacation. Normal capacity is 350,000 glasses of which five percent is usually scrapped due to breakage during the bending. The equipment is shut down for preventative maintenance for one day every two months.

1. Calculate in hours and glasses the rated (or theoretical) capacity.

2. Calculate in hours and glasses the nonproductive capacity.

3. Calculate in hours and glasses the idle off-limits capacity.

4. If scrap was reduced to 3.5%, how many additional glasses could Carefree Enterprises produce?