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You are the manager at Sampson Products has a bracket that is made of a base, 2 springs, and 4 clamps. The base is assembled form one clamp and two housings. Each clamp has one handle and one casting. each housings has 2 bearings and one shaft. There is no inventory on hand.
Your boss has just provided you with the schedule and lead time for the brackets in the paragraph above. The unit is to be prepared in Week10. The lead times for the components are the bracket(1 week), base(1 week), spring(1 week), clamp(1 week), housings(2 weeks), handle(1 week), casting(3 weeks), bearings(1 week), and shaft(1 week).
a. Prepare the time-phased production structure for the bracket.
b. In what week do you need to start the castings?
Calculate the present value of a stream of cash flows based on a discount rate of 8%. Annual cash flow is as follows:
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