Concept explainers
a)
To construct: A product structure.
Introduction:
Product structure:
The product structure is a visual representation of the components needed for a product assembly and the sequence at which they must be developed. It will clearly depict the parents and children components at each level.
b)
To construct: A time-phased product structure.
Introduction:
Time-phased product structure:
The time-phased product structure will represent the product visually with the details of when each component must begin production. It should be done to ensure that all the components are on time.
c)
To develop: A net requirements plan.
Introduction:
Net requirements plan:
The net requirements plan is the plan which is established on the gross requirements plan formed by deducting the stock on and the scheduled receipts. If the total requirement is below the safety stock levels, a planned order is made based on the given lot sizing technique.
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EBK PRINCIPLES OF OPERATIONS MANAGEMENT
- Courtney Kamauf schedules production of a popular Rustic Coffee Table at Kamauf Enterprises, Inc. The tablerequires a top, four legs, 18 gallon of stain, 116 gallon of glue, 2 shortbraces between the legs and 2 long braces between the legs, anda brass cap that goes on the bottom of each leg. She has 100 gallons of glue in inventory, but none of the other components. Allitems except the brass caps, stain, and glue are ordered on a lotfor-lot basis. The caps are purchased in quantities of 1,000, stainand glue by the gallon. Lead time is 1 day for each item. Schedulethe order releases necessary to produce 640 coffee tables on days5 and 6, and 128 on days 7 and 8.arrow_forwardDescribe the advantages of cycle counting over an annualphysical inventory.arrow_forward14.26. Calculate the available-to-promise row in the following matrix: Period On Hand = 100 1 2 3 4 5 6 Forecast 50 100 50 100 50 100 Customer Orders 50 125 75 175 45 15 Master Production 200 200 Schedule Available-to-Promisearrow_forward
- 7. The following were taken from the records of Sauyo Company: Year Cost of Beginning Ending Good Sold Inventory Inventory (In Pesos) (In Pesos) 340,500 25,300 30,200 2. 435,040 30,200 35,400 520,400 35,400 36,400 4 547,500 36,400 38,300 600,700 38,300 39,000 Required: Compute the inventory turn-over for year 5. Round off answer to whole number.arrow_forwardTuff-Rider, Inc., manufactures touring bikes and mountain bikes in a variety of frame sizes, colors, and component combinations. Identical bicycles are produced in lots of 110. The projected demand, lot size, and time standards are shown in the following table: i Item Demand forecast Lot size Standard processing time Standard setup time Touring 4,000 units/year 130 units 0.20 hour/unit 2 hours/lot Mountain 10,000 units/year 110 units 0.50 hour/unit 3 hours/lot The shop currently works 8 hours a day, 5 days a week, 48 weeks a year. It operates five workstations, each producing one bicycle in the time shown in the table. The shop maintains a 15 percent capacity cushion. How many workstations will be required next year to meet expected demand without using overtime and without decreasing the firm's current capacity cushion? The number of workstations required next year is. (Enter your response rounded up to the next whole number.)arrow_forwardDescribe situations in which the single-period model is appropriate and solve typical problems.arrow_forward
- Demand for stereo headphones and MP3 players for joggers has caused Nina Industries to grow almost 50 percent over the past year. The number of joggers continues to expand, so Nina expects demand for headsets to also expand, because, as yet, no safety laws have been passed to prevent joggers from wearing them. Demand for the players for last year was as follows: MONTH DEMAND (UNITS) January February 4,100 4,200 March 3,900 April 4,300 May 4,900 June 4,600 July 5,200 August 4,800 September 5,300 October 5,600 November 6,200 December 5,900arrow_forwardAssume you are the manager of a shop that assembles power tools. You have just received an order for 55 chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws follows: Item Lead Time (weeks) On Hand Saw A B C D E F 2 1 2 2 1 1 2 Gross requirements Scheduled receipts Projected on hand Net requirements Planned order receipt Planned order release Ĉ E(3) & E(2) LT = 1 week Lot size: Lot-for-Lot 15 10 5 65 20 10 30 Skip Extension Tip: Double click to open in new tab Show Transcribed Text Develop the material requirements plan for component E using lot-for-lot ordering for all items. (Leave no cells blank - be certain to enter "0" wherever required.) Components A(2), B(1), C(4) E(3), D(1) D (2), F(3) E(2), D (2) Beg. Inv. 1 2 3 190 5 210 6arrow_forwardExplain the two common inventory estimation methods, mentioning key similarities and differences between the two and use practical real-life scenarios to elaborate on each.arrow_forward
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