A well-educated operations manager used the capacity requirements equation to determine the number of crackerbox welders to purchase for the shop, given the standard time per unit, hours available per machine, among other relevant parameters. He studied the answer, 12.6, and concluded that:
A) he had made a mistake, since it isn't possible to purchase a fractional welder.
B) he needed to decrease his desired capacity cushion to bring him up to an even thirteen welders.
C) he should buy twelve welders and spend 50% more time per part to reach the 12.6 figure.
D) he should buy twelve welders and use all of them at 5% overtime to achieve the necessary output.

Question

Quizplus · Accepted Answer

Since it is not possible to purchase a fractional welder, the manager should round up the answer to the nearest whole number, which is 13. However, if he wants to maintain his desired capacity cushion, he should opt for choice D. By purchasing 12 welders and using all of them at 5% overtime, the shop can achieve the necessary output without having to spend more time per part or compromising on the desired capacity cushion.

A Well-Educated Operations Manager Used the Capacity Requirements Equation to Determine