Smurfit Kappa is planning to build a packaging plant in Granegorman. Smurfit Kapp\'s business strategy is to build all future plants to an operating capacity of 10,000 products a week. Assuming the new plant operates 24 hrs a day 7 days a week. answer the following; For this new plant Smurfit Kappa has to choose between two different makes of production lines \"Alpha\" or \"Beta\". Smurfit Kappa operates these production lines in other global locations. Using the following information calculate how many production lines each option would require? Alpha Production Line: Weekly Down-Time = 17hrs, Production speed 19 parts/hr, visits, scrap 1.01, rework 1.01 Beta Production Line: Weekly Down-Time = 25hrs, Production speed 25 parts/hr, visits I, scrap 1.02, rework 1.01 Identify and explain which production line Smurfit Kappa should choose, \"Alpha\" or \"Beta\"?
Let us analyze both the machines one by one
(a)
Alpha Production Line:
Total working hours in a week = 24*7-17 = 151
Total parts produced per week = 19*151 = 2869
Required number of lines = 10000/2869 = 3.48 ~ 4
Therefore, 4 units of Alpha Production Line are required.
Beta Production Line:
Total working hours in a week = 24*7-25 = 143
Total parts produced per week = 25*143 = 3575
Required number of lines = 10000/3575= 2.79 ~ 3
Therefore, 3 units of Alpha Production Line are required.
(b) Since we need 4 production lines if we use alpha strategy and we need only 3 production lines if we use beta strategy. Therefore, it is better to use beta production line.
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