Compute a schedule using least-total-cost lot sizing, Operation Management

Assignment Help:

Brunswick, read an article on time-phased requirements planning. He was curious about how this technique might work in scheduling Brunswick's engine assembly operations and decided to prepare an example to illustrate the use of time-phased requirements planning. Phil's first step was to prepare a master schedule for one of the engine types produced by Brunswick: the Model 1000 engine. This schedule indicates the number of units of the Model 1000 engine to be assembled each week during the last 12 weeks and is shown in Figure 1. Next, Phil decided to simplify his requirements planning example by considering only two of the many components that are needed to complete the assembly of the Model 1000 engine. These two components, the gear box and the input shaft, are shown in the product structure diagram in Figure 2. Phil noted that the Gear Box is assembled by the subassembly Department and subsequently is sent to the main engine assembly line. The Input Shaft is one of several component parts manufactured by Brunswick that are needed to produce a Gear Box sub-assembly. Thus, levels 0, 1, and 2 are included in Figure 2 to indicate the three manufacturing stages that are involved in producing an engine: The Engine Assembly Department, the Sub-Assembly Department, and the Machine Shop. Figure 1 Model 1000 Master Schedule Week 1 2 3 4 5 6 7 8 9 10 11 12 Quantity 15 5 7 10 0 15 20 10 0 8 2 16 The manufacturing lead times required to produce the Gear Box and the Input Shaft components are also indicated in Figure 2. Note that two weeks are required to produce a batch of Gear Boxes and that all of the Gear Boxes must be delivered to the assembly line parts stockroom before Monday morning of the week in which they are to be used. Likewise, it takes three weeks to produce a lot of Input Shafts, and all of the shafts that are needed for the production of Gear Boxes in a given week must be delivered to the Sub- Assembly Department stockroom before Monday morning of that week. In preparing the MRP example, Phil planned to use the attached worksheets and to make the following assumptions: 1. Seventeen Gear Boxes are on hand at the beginning of week 1 and five Gear Boxes are currently on order to be delivered at the start of week 2. 2. Forty input shafts are on hand at the start of week 1, and 22 are scheduled for delivery at the beginning of week 2. ASSIGNMENT: 1. initially, assume that Phil wants to minimize his inventory requirements. Assume that each order will be only for what is required for a single period. Using the following forms, calculate the net requirements and planned order releases for the gear boxes and input shafts. Assume that lot sizing is done using lot-for-lot. 2. Phil would like to consider the costs that his accountants are currently using for inventory carrying and setup for the gear boxes and input shafts. There costs are as follows: PART COST Gear Box Setup=$90/order Inventory carrying cost=$2/unit/week Input Shaft Setup=$45/order Inventory carrying cost=$1/unit/week given the cost structure, evaluate the cost of the schedule from (1). Assume inventory is valued at the end of each week. 3. Calculate a schedule using least-total-cost lot sizing. What are the savings with this new Schedule?


Related Discussions:- Compute a schedule using least-total-cost lot sizing

Strengths and weaknesses of a tiny family owned restaurant, Assume you work...

Assume you work for a family owned restaurant, WHAT ARE some of the typical strengths and weaknesses of a small family owned restaurant? What types of opportunities and threats wou

Explain activity immediate predecessor normal time, The Scott Corey account...

The Scott Corey accounting firm is installing a new computer system, and several things must be done to make sure the system works properly. The following table provides informatio

Explain current design strategy, In what ways does an airline alliance refl...

In what ways does an airline alliance reflect each of the four dominate themes of current design strategy?

Explain the criteria you would use if you were a manager, In one paragraph ...

In one paragraph supported by your text and other research, describe the criteria you would use if you were a manager charged with evaluating corporate contributions to decide whet

Process of reengineering according to hammer and champy, Explain the proces...

Explain the process of reengineering according to Hammer and Champy. Hammer and Champy (1993) explained the process of reengineering as "the basic rethinking and radical redesi

Explain various goods from similar amount of resources, Explain various num...

Explain various numbers of goods as output from similar amount of resources (input) in improving productivity. Management can raise productivity that is management can get vari

Limitations of e-business, Limitations of E-Business 1.      Problems ...

Limitations of E-Business 1.      Problems relating to the security of the data  2.      Limitations of bandwidth (speed of data transmission)  3.      Standardisation o

Explain lean prospective and identify the types of waste, Think about any c...

Think about any class (undergraduate or graduate) in which you worked on a class project. Think about the process you went through in order to complete this final project. a. li

Calculate a tracking signal for months, The following are monthly actual an...

The following are monthly actual and forecast demand levels for May thru December for units of a product manufactured by the N. Tamimi Pharmaceutical Company: Month Actual Deman

Explain direct marketing association website, On the Direct Marketing Assoc...

On the Direct Marketing Association website, what is interesting, how can companies use the website, what information is surprising and why?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd