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

Factors for selection of processes, Factors for Selection of Processes ...

Factors for Selection of Processes The following factors should be considered for selection of processes: Quantity to be produced: Some processes are very expen

What are the disadvantages of the chase demand strategies, What are the dis...

What are the disadvantages of the chase demand strategies? The disadvantages of the chase demand strategies are as illustrated below: a. Over reliance onto flexible staff th

Explain case studies with ethnographic research, 1. What benefits can be ga...

1. What benefits can be gained from case studies? What dangers, if any, are there in using case studies? In what ways are they useful? Support your answers. 2. Provide some exam

Explain responsibility towards importers and exporters, The U.S. State Depa...

The U.S. State Department has some responsibility towards Importers and Exporters. What are these responsibilities?

Explain better plan capacity, The number of students enrolled at Spring Val...

The number of students enrolled at Spring Valley Elementary has been steadily increasing over the past five years. The school board would like to forecast enrolment for years 6 and

Explain common-size financial statement, What is a "common-size financial s...

What is a "common-size financial statement" and how would it assist you to manage your business successfully?

Explain mangers and their companies currently performing, How are these man...

How are these mangers and their companies currently performing?

Explain discussion of power and influence, From the Finding the Leader in y...

From the Finding the Leader in you highlight, we read about Nelson Mandelas use of power for the greater good. Using the books discussion of power and influence as a backdrop, anal

Explain the role viruses other malicious code, Explain how the Internet has...

Explain how the Internet has aided criminal activity. 2. Provide three (3) specific examples of how the Internet has aided criminal activity. 3. Identify the types of crime that tr

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