Knott’s Industries manufactures standard and super premium backyard swing sets. Currently it has four identical swing-set-making machines, which are operated 275 days per year and 8 hours each day. A capacity cushion of 20 percent is desired. The following information is also known Annual Demand Standard Processing Time Average Lot Size Standard Setup Time per Lot Standard Model 20,000 10 min Super Premium Model 10,000 17 min 25 45 min 30 min a. Does Knott’s have sufficient capacity to meet annual demand? Knott’s number.) ▼I have sufficient capacity to meet annual demand because machines are needed. (Enter your response rounded up to the next whole

time per machine 2200
At 20% cushion 2640
Standard Premium Total
D Demand 20000 10000
hours SPT Sandard Processing time 0.166667 0.283333
L Avg lot size 55 25
hours ST Set up time per lot 0.5 0.75
N No of lots = D/L 364 400
TST total set up time = ST*N 182 300 482
TSPT Processing time= D*SPT 3333.333 2833.333 6166.667
Total time required 6648.667
Per machine time available 2640
No of machine required 2.518434
So machine required 3
So Ans :

will…have sufficient capacity to meet annual demand because 3 machines are needed.

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