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

Explain what is the value of the coefficient, Forecasting 1. Briefly des...

Forecasting 1. Briefly describe when qualitative versus quantitative forecasting methods would be used? 2. Linear Regression. a. Describe what linear regression is and how

Determine the factors and reasons for dumping, From the case study, determi...

From the case study, determine these factors: (a) people or institution doing the dumping, (b) reasons for dumping, (c) places where the dumping takes place, or (d) the product, in

Explain what is the expected growth rate, Sidman Products' common stock cur...

Sidman Products' common stock currently sells for $51 a share. The firm is expected to earn $6.10 per share this year and to pay a year-end dividend of $2.40, and it finances only

Greater flexibility of core staff in an organisation, How is greater flexib...

How is greater flexibility of core staff achieved in an organisation? Greater flexibility of core staff into an organisation is accomplished by the follow: a. Shorter term a

Define the local convenience store makes personal pan pizzas, The local con...

The local convenience store makes personal pan pizzas. Currently, their process makes complete pizzas, fully cooked, for the customer. This process has a fixed cost of $20,000, and

Describe educational and training, How the organization might adopt a techn...

How the organization might adopt a technology trend to improve the quality of the health care delivered to organization members. The board wants to know what are the "Educational a

Explain ethics becomes less practical, Which among the following frameworks...

Which among the following frameworks of ethics becomes less practical with an increase in the number of people, animals, etc. that could be affected by decisions made?

Explain prohibiting the replacement of economic strikers, What are the econ...

What are the economic and social consequences of prohibiting the replacement of economic strikers?

Explain how many units produced to maximize the profit, The Toys-R-4-U Comp...

The Toys-R-4-U Company has developed two new toys for possible inclusion in its product line. Setting up the production facilities to begin production would cost $50,000 for toy 1

Explain what are equitable and legal remedies, As a new manager in your dep...

As a new manager in your department, you are tasked with the job of providing employee training for members of your department who have interactions with the legal department. In o

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