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

Impact of activity of listening, How is the activity of listening impacted ...

How is the activity of listening impacted by the particular situation?

Explain to beat the competition to a sale, During the holidays, companies o...

During the holidays, companies often provide gifts to customers. The more a client spends, the larger the gift, usually. To segment customers in this way, for what purpose is this

Gantt load chart, Gantt Load Chart The Gantt charts were developed by...

Gantt Load Chart The Gantt charts were developed by Henry L. Gantt about a century ago. Their purpose is to provided an immediate comparison between schedule an reality ( i,

Implementation of the quality planning and control activity, Question : ...

Question : (a) Discuss the various stages involved in the development and implementation of the quality planning and control activity. (b) Checking should be carried out at

Explain personal and professional lives, How can you see the integration an...

How can you see the integration and the modern management theory integrated into your own personal and professional lives? Pick only one theory for there are hundreds

Explain discussion maker acted unfairly in this situation, Why do think the...

Why do think the discussion maker acted unfairly in this situation?

Explain what the main organizational problems, What do you see as the main ...

What do you see as the main organizational problems that are likely to be associated with implementation of a transnational strategy? Explain

Number of rules for string diagram, There are a number of rules developed a...

There are a number of rules developed and given under three broad headings: 1. Related to the use the Human Body : a. The two hands should beings as well as complete their

Determine the feasible solution of transportation problem, A firm owns faci...

A firm owns facilities at six places. It has manufacturing plants at places A B and C with daily production of 50, 40 and 60 units respectively. At points E, E and F it has three w

Define pizza delivery process design requirements, Pizza USA is a chain of ...

Pizza USA is a chain of pizza restaurants offers sit down and take out service. Part I as the customer: make a list of the attributes of a pizza delivery of pizza delivery that are

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