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The Pacific Chemical Company Produces High Quality Paint in Oregon

Question 90

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The Pacific Chemical Company produces high quality paint in Oregon for sale throughout the western U.S. The company ships paint in gallon containers. The production manager has developed the following master production schedule (MPS) for the next six months (data is in thousands of gallons):
 Month 123456 Paint 130150170160160120\begin{array}{|l|l|l|l|l|l|l|}\hline \text { Month } & 1 & 2 & 3 & 4 & 5 & 6 \\\hline \text { Paint } & 130 & 150 & 170 & 160 & 160 & 120 \\\hline\end{array} The company's monthly labor and machine capacity available (in hours) and its production standards (in hours per gallon) are:
 Labor  Machine  Capacity available 15,00023,000 Production Standard .09.12\begin{array}{|l|l|l|}\hline & \text { Labor } & \text { Machine } \\\hline \text { Capacity available } & 15,000 & 23,000 \\\hline \text { Production Standard } & .09 & .12 \\\hline\end{array}
a.What is the percentage utilization of the labor capacity in Week 4?
b.What is the percentage utilization of the machine capacity in Week 2?
c.In which weeks are the machine requirements over capacity?

Correct Answer:

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a. 96.0; b...

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