Determine the capacity of production lines. Ameriwidget’s CEO has asked you to perform a series of small calculations in order to determine the capacity of the production lines used by Ameriwidget. Use the data provided in the “Ameriwidget Data” and “Ameriwidget Info” spreadsheet to make these calculations, and then submit them as part of your logistics analysis. In order to determine the capacity of Ameriwidget’s production lines, do the following:
- Determine the current production capacity for each manufacturing line.
- Determine the monthly utilization rate for each production line.
Company background: Ameriwidget is a medium-sized bicycle manufacturer located in Wichita, Kansas. It produces three lines of bicycles: a cruiser, a mountain bike, and a “fixie” city bike. Product lines: At any one time, Ameriwidget is likely in the process of producing three different types of bicycles based on market demand projections and current finished-goods inventory levels. Anticipated demand: Based on historical figures for growth within the company’s product lines, the company anticipates that sales will grow by 7% each month. Production line: To construct a bicycle, the Ameriwidget production line has consolidated and streamlined its production process so that its six different fabrication machines are capable of working 16 machine hours per day, five days a week, producing an average of one bicycle every three hours. As demand is relatively even across its product lines, Ameriwidget has assigned two machines to each production line.
