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 the potential for a new shampoo package, Which type of research des...

Which type of research design - exploratory, descriptive, or casual - is appropriate for the following examples? Explain why? A hair-care manufacturer interviews wholesalers, retai

Describe disadvantages of each of these approaches, McDonalds traditional p...

McDonalds traditional process to make-to-stock; Wendy's has a make-to-order and burger king has a process which is a hybrid of the other two. Discuss the advantages and disadvantag

Explain direct effects and indirect effects of goals, What is the differenc...

What is the difference between direct effects and indirect effects of Goals on choice of strategy?

Describe implications for the video game industry, Case Study- Implications...

Case Study- Implications for the Video Game Industry To consider the viability of Nintendo's new strategy, the CEO of Nintendo, has brought you in as a consultant. Your task is

Total and partial factor productivity measurements, Total and Partial Facto...

Total and Partial Factor Productivity Measurements  Total factor productivity (TFP) is the best measure when describing national productivity, because it includes all the inpu

MB 0044 - Production and Operation Management, What do you understand by “l...

What do you understand by “line balancing”? What happens if balance doesn’t exist?

Explain generally unnecessary to have every single function, It is generall...

It is generally unnecessary to have every single function represented on the core team of the project as that would make the team large than necessary and difficult to communicate

Was due process denied describe, A state statute empowered public school pr...

A state statute empowered public school principals to suspend students for up to ten days without any notice or hearing. A student who was suspended for ten days challenges the con

Explain ethernet network with a fddi network, A bridge that is used to conn...

A bridge that is used to connect an Ethernet network with a FDDI network must be practicing what type of bridging?

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