# Student

1014 Words5 Pages
Problem 1 (page 533)

The Barberton Municipal Division of Road Maintenance is charged with road repair in the city of Barberton and the surrounding area. Cindy Kramer, road maintenance director, must submit a staffing plan for the next year based on a set schedule for repairs and on the city budget. Kramer estimates that the labor hours required for the next four quarters are 6,000, 12,000, 19,000, and 9,000, respectively. Each of the 11 workers on the workforce can contribute 500 hours per quarter. Payroll costs are \$6,000 in wages per worker for regular time worked up to 500 hours, with an overtime pay rate of SIR for each overtime hour. Overtime is limited to 20 percent oldie regular-time capacity in any quarter. Although unused
The current on-hand inventory is 100 units. The order policy is to produce in lots of 75. The booked customer orders for the item, starting with week 1, are 15, 38, 7, 5, 0, 3, 10, 0, 0, and 0 units. The lead time is 2 weeks.
a. Develop an MPS for this end item.
b. The marketing department has received five orders for this item in the following sequence:
Order 1 is for 20 units to be delivered in period 1
Order 2 is for 75 units to be delivered in period 4
Order 3 is for 90 units to be delivered in period 6
Order 4 is for 75 units to be delivered in period 7
Order 5 is for 90 units to be delivered in period 10
Assuming that the prospective MPS you developed in part (a) does not change, which orders would you be able to accept based on the available to promise (ATP)?

SOLUTION

Master Production Schedule for end item

a. MPS

Lot Size: 75 LT = 2 weeks | Week | Quantity on Hand: 100 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | Forecast | 30 | 30 | 30 | 30 | 20 | 20 | 30 | 30 | 30 | 30 | Customer orders (booked) | 15 | 38 | 7 | 5 | 0 | 3 | 10 | 0 | 0 | 0 | Projected on-hand inventory | 70 | 32 | 2 | 47 | 27 | 7 | 52 | 22 | 67 | 37 | MPS quantity | | | | 75 | | | 75 | | 75 |