Assignment:
Knott's Industries manufactures standard and super premium backyard swing sets. Currently it has four identical swing-set-making machines, which are operated 300 days per year and 8 hours each day. A capacity cushion of 20 percent is desired. The following information is also known:
a. Does Knott's have sufficient capacity to meet annual demand? Knott's does have sufficient capacity to meet annual demand because 4 machines are needed.
b. If Knott's was able to reduce the setup time for the Super Premium Model from 45 minutes to 30 minutes, would there be enough current capacity to produce 20,000 units of each type of swing set?
If Knott's was able to reduce the setup time for the Super Premium Model from 45 minutes to 30 minutes, there be enough capacity to produce 20,000 units of each type of swing set because machines are needed.