Reference no: EM131789251

The Green Thumb Water Sprinkler Company was founded in 1948 by Arthur Green, an entrepreneur with an avid interest in home gardening. Today the successful company, known as Arthur Green, Inc., is run by Arthur’s descendants. Among other things Arthur Green produces a line of high-quality sprinklers targeted at upper-income hobbyists. The company’s products are considered very “retro” in design and are seen by customers as unique and harkening back to an earlier time. To reinforce this image company catalogs and websites feature photos of the late Arthur Green working in his garden and wearing a pith helmet, popular in the past with some gardeners. A stylized drawing of Arthurs’s pith helmet appears on the company’s logo, and one of the real Arthurian headgear is lovingly displayed behind glass at the company’s headquarters in Oconomowoc, Wisconsin. One product made by Arthur Green is the Model #984 Basic Lawn Sprinkler, a mainstay of the company’s product line and little-changed since first introduced in 1953. The #984 Sprinkler is very basic in design and easy to assemble. A product structure tree is given later in this problem as well as basic information about each item in the tree. Capacity is limited in that a maximum of 500,000 sprinklers may be shipped in any given week. Note especially the items Raw Aluminum Tubing and Bulk Paint. The tubing ½” in diameter and is purchased in 12-foot lengths. 3800 of these 12-foot tubes can be shipped on a single semi flatbed trailer. The lengths of tubing are then cut to form the Frame Tube and the Sprinkler Tube. The Bulk Paint is purchased in semi tanker loads of 5000 gallons each. Considering the Master Production Schedule and other information given on the following page: a.Develop MRP reports for each of the ten items of interest in the #984 problem. For Raw Aluminum Tubing and Bulk Paint your report should show the number of truck/tanker loads to be ordered in each time bucket. b.For the planning scenario in part a above you also need an estimate of scrap aluminum tubing to be sold for recycling on a weekly basis. Determine on a week-by-week basis the revenue that can come from selling scrap aluminum assuming: One foot of aluminum tubing weighs .17 pounds. The market price for scrap aluminum of this type is $0.40 per pound. c.Mall-Mart Stores, Inc., a very good customer, has suddenly asked whether Arthur Green can ship an additional 140,000 #984 sprinklers in Week 4. This is on top of other orders reflected in the Master Production Schedule and includes the 8-truckload Scheduled Receipt in Week 1. Modify the Master Production Schedule such that Arthur Green can: Meet the new quantity from Mall-Mart as quickly as possible. Fulfill all other existing orders in the MPS. Incur no more than a 10% change in MPS quantities week-to-week. Master Production Schedule Week 4 5 6 7 8 9 10 11 12 Shipment Quantity 125,000 100,000 145,000 175,000 200,000 220,000 220,000 230,000 250,000 Item Ordering Policy Beginning Inventory Scheduled Receipts Sprinkler Lot = 800 5,000 Water Motor Assembly Any Batch Size 0 Hose Receptacle Assembly Lot = 10,000 0 Frame Assembly Any Batch Size 0 Sprinkler Tube Any Batch Size 10,000 Metal Screw Lot = 100,000 50,000 Water Motor Lot = 50,000 50,000 Frame Tube Lot for Lot 0 Plastic Cap Lot = 10,000 50,000 10,000 in Week 2 End Plate Lot = 1,000,000 350,000 Bulk Paint Lot = 8500 gallons 3200 gallons Raw Aluminum Tubing Lot = 3500 sections 25,000 sections 10 Truckloads in Week 1 Additional Information The End Plate has a 2-week lead time. All other items have a lead time of 1 week. The grade and gauge of aluminum tubing used here weighs .17 pounds per linear foot. The current market price for scrap aluminum tubing is $0.40 per pound.