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Class notes on Capacity planning

Scenario
A transport truck carries around 200 tyres per trip and the average cost per trip
is Rs. 1200.
Questions:
1. Prepare appropriate charts to show the Operations and material flow. What type
of layout is recommended for this facility?
2. What will be the production per shift at each stage of production? How many
machines will be required to meet the demand?
3. Prepare the overall production plan and production schedule for each operation.
4. What will be the production cost (including overheads & transport) per tyre in
each quarter? What will be the total cost per tyre including material?
5. A new Vulcanizing Compound has been developed by a research laboratory which
brings down the tyre curing time by 25%. However, it is expensive and the cost of
Chemicals per tyre goes up by 12% if the new compound is used. Is it profitable to
use this new compound?

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