OPERATIONS MANAGEMENT(LL)-W/CONNECT >IC<
7th Edition
ISBN: 9781260839456
Author: SCHROEDER
Publisher: MCG CUSTOM
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Chapter 15, Problem 2P
eXcel The Old Hickory Furniture Company manufactures chairs on the basis of the BOM shown below. At the present time, the inventories of parts and lead times are as follows:
The firm would like to produce 600 chairs in week 5 and 300 chairs in week 6.
- a. Develop a materials plan for all the parts.
- b. What actions should be taken now?
- c. Assume it takes one hour to assemble backs, one hour to assemble legs, and two hours to finish completed chairs. Total assembly time for all three types of assembly is limited to 1000 hours per week. Will this capacity constraint cause a bottleneck in assembly? If it does, what can be done?
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The BOM for product A is shown in Figure 11.40, and datafrom the inventory records are shown in Table 11.9. In theMPS for product A, the MPS start row has 100 units in week 3and 200 in week 6. Develop the material requirements planfor the next 6 weeks for items C, D, and E. a. Develop the material requirements plan for the next6 weeks for items C, D, and E.b. What specific managerial actions are required inweek 1?
Figure shows the BOMs for two products, A and B. Table 1 shows the MPS quantity start date for each one. Table 2 contains data from inventory records for items C, D, and E. There are no safety stock requirements for any of the items.a. Determine the material requirements plan for items C, D, and E for the next 8 weeks.b. What specific managerial actions are required in week 1?c. Suppose that a very important customer places an emergency order for a quantity of product A. To satisfy this order, a new MPS of 200 units of product A is now required in week 5. Determine the changes to the material requirements plan if this order is accepted and note any problems that you detect.
MPS Quantity Start Dates
Date
Product
1
2
3
4
5
6
7
8
A
125
95
150
130
B
80
70
Inventory Record Data
Item
Data Category
C
D
E
Lot-sizing rule
L4L
POQ 1P = 32
FOQ = 800
Lead time
3 weeks
2 weeks
1 weeks
Scheduled receipts
200 (week 2)
None
800 (week 1)
Beginning…
create a spreadsheet in Excel on the following.
Your mission is to visit a "Mam and Pap" convenient store and observe how they do business. Then using your skills and abilities along with all of the spreadsheet functions and formulas you would have learned in this class, decide how best you can help them perform their daily regiments better.
Some ideas to consider are:
1. Better ways of controlling their inventory
1. Marketing strategies
3. Salary payment
4. Labelling and pricing of items/goods.
5. Store layout
Project 2 instructions are as follows:-
Your mission is to visit a "Mam and Pap" convenient store and observe how they do business. Then using your skills and abilities along with all of the spreadsheet functions and formulas you would have learned in this class, decide how best you can help them perform their daily regiments better.
Some ideas to consider are:
1. Better ways of controlling their inventory
1. Marketing strategies
3. Salary payment
4. Labelling and pricing of…
Chapter 15 Solutions
OPERATIONS MANAGEMENT(LL)-W/CONNECT >IC<
Ch. 15.7 - Prob. 1OLCh. 15 - Prob. 1DQCh. 15 - Prob. 2DQCh. 15 - With regard to inventory management, discuss the...Ch. 15 - Prob. 4DQCh. 15 - How much safety stock should be carried in a MRP...Ch. 15 - Prob. 6DQCh. 15 - Prob. 7DQCh. 15 - Prob. 8DQCh. 15 - Prob. 9DQ
Ch. 15 - Describe how MRP? concepts could be used for the...Ch. 15 - How are MRP and ERP related?Ch. 15 - The following information is given for a...Ch. 15 - eXcel The Old Hickory Furniture Company...Ch. 15 - Product A consists of subassemblies B and C....Ch. 15 - eXcel The BOM for product A given below Part on...Ch. 15 - The master scheduler in the ABC Widget Company is...Ch. 15 - A firm makes a basic scissors consisting of three...Ch. 15 - Prob. 7PCh. 15 - Prob. 8PCh. 15 - A small toy robot is assembled from sis parts: a...
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- A phone production company must prepare the production planning for the next 9 weeks. Complete the below table considering this information: Lead Time = 3 Weeks On-hand inventory of 52 phones from week 1. Receipt from an outside supplier of 15 phones at start of week 7 We need to supply 75 phones on week 4. We need to supply 120 phones on week 9. Product A Week 1 2 3 4 5 6 7 8 9 Gross Requirement On-hand inventory Planned orderarrow_forwardAn end item’s demand forecasts for the next 10 weeks are 30,20, 35, 50, 25, 25, 0, 40, 0, and 50 units. The current on-handinventory is 80 units. The order policy is to produce in lots of100. The booked customer orders for the item, starting withweek 1, are 22, 30, 15, 9, 0, 0, 5, 3, 7, and 0 units. At present,no MPS quantities are on-hand for this item. The lead time is2 weeks. Develop an MPS for this end item.arrow_forwardAn end item’s demand forecasts for the next 10 weeks are 30, 30, 30, 30, 20, 20, 30, 30, 30, and 30 units. The current onhand 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 1Order 2 is for 75 units to be delivered in period 4Order 3 is for 90 units to be delivered in period 6Order 4 is for 75 units to be delivered in period 7Order 5 is for 90 units to be delivered in period 10Assuming 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)?arrow_forward
- The BOM for product A is shown in Figure 11.45. The MPS forproduct A calls for 120 units to be started in weeks 2, 4, 5, and8. Table 11.14 shows data from the inventory records.a. Develop the material requirements plan for the next8 weeks for each item.b. What specific managerial actions are required in week 1?Make sure you address any specific difficulties youencounter in the inventory records.arrow_forwardYou have developed the following simple product structure of items needed for your gift bag for a rush party for prospective pledges in your organization. You forecast 300 attendees. Assume that there is no inventory on hand of any of the items. Explode the bill of material. (Subscripts indicate the number of units required.) K(1) L(5) M(3) J Determine the number of units of each item required. Item K: Item L: Item M:arrow_forwardThe following table lists the components needed to assemble an end item, the manufacturing or purchase lead times (in weeks) for typical lot sizes, amount on hand, and the direct components of each item and, in brackets, the number of each component for each parent. Item Lead Time Amount onHand DirectComponents End item 1 - L(2), C(1), K(3) L 2 14 B(2), J(3) C 3 30 G(2), B(2) K 1 25 H(4), B(2) B 4 15 J 2 10 G 4 5 H 2 - a. Not available in Connect.b. If 46 units of the end item are to be assembled, how many additional units of B are needed? (You don’t need to develop the MRP tables.)Additional units ____ c. An order for 46 units of the end item is scheduled to be shipped at the start of week 11. What is the latest week that the components of the order can be started and the order still be ready to ship on time? (You don’t need to develop the MRP tables.)The latest week ____arrow_forward
- An end item’s demand forecasts for the next 6 weeks are 30 units, followed by forecasts of 25 units for weeks 7 through 10. The current on-hand inventory is 60 units. The order policy is to produce in lots of 100. The booked customer orders for the item, starting with week 1, are 22, 30, 15, 11, 0, 0, 9, 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 six orders for this item in the following sequence:Order 1 is for 40 units to be delivered in period 3Order 2 is for 60 units to be delivered in period 4Order 3 is for 70 units to be delivered in period 6Order 4 is for 40 units to be delivered in period 3Order 5 is for 20 units to be delivered in period 5Order 6 is for 115 units to be delivered in period 9Assuming 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)?arrow_forwardAs the production planner for Xiangling Hu Products, Inc., you have been given a bill of material for a bracket that is made up of a base, 2 springs, and 4 clamps. The base is assembled from 2 clamps and 1 housing. Each clamp has 1handle and 1 casting. Each housing has 2 bearings and 2 shafts. There is no inventory on hand. Part 3 b) Determine the gross quantities needed of each item if you are to assemble 150 brackets. Base: enter your response here units (enter your response as a whole number). Spring: enter your response here units (enter your response as a whole number). Clamp: enter your response here units (enter your response as a whole number). Housing: enter your response here units (enter your response as a whole number). Handle: enter your response here units (enter your response as a whole number). Casting: enter your response here units (enter your response as a whole number). Bearing: enter…arrow_forwardThe following table lists the components needed to assemble an end item, the manufacturing or purchase lead times (in weeks) for typical lot sizes, amount on hand, and the direct components of each item and, in brackets, the number of each component for each parent. Item Lead Time Amount onHand DirectComponents End item 1 - L(2), C(1), K(3) L 1 8 B(2), J(3) C 3 14 G(2), B(2) K 3 18 H(4), B(2) B 1 24 J 4 34 G 3 38 H 3 - a. This part of the question is not part of your Connect assignment.b. If 44 units of the end item are to be assembled, how many additional units of B are needed? (You don’t need to develop the MRP tables.)Additional units c. An order for 44 units of the end item is scheduled to be shipped at the start of week 8. What is the latest week that the components of the order can be started and the order still be ready to ship on time? (You don’t need to develop the MRP tables.)The latest weekarrow_forward
- Consider the following product structure (bill of material). One hundred and fifty (150) units of Product A are needed in week 10. Assuming no on-hand inventory of A exists, explode the bill of material, and use the following information to construct a net requirements plan for all the items. You must use the template provided by the instructor and provide all the information needed on the template. There are no scheduled receipts for all the items. Item On-hand Inventory Lead time (weeks) A 0 2 B 20 2 C 10 1 D 0 3 E 5 1 F 10 3 Item: LT= 1 2 3 4 5 6 7 8 9 10 11 12 Gross Requirements Scheduled Receipts Projected on Hand Net Requirements…arrow_forwardAn electric hand drill would take 15, 40, 10, 20, 50, and 30 units in the next 6 weeks. The marketing department has booked orders for the first, second, third, and fourth weeks for 20, 25, 10 and 20 units in all. Currently, there are 30 hand boxes in order. The strategy should be ordered in several 60 units. One week is lead period. Lead time. A. Develop the MPS hand drill log. b. A hand drill dealer puts an order for 15 units. What is the correct date of shipment for the whole order?arrow_forwardWSS company makes weatherproof surveillance systems for parking lots. Demand estimates for the next four quarters are 25, 9, 13, and 17 units. Prepare an aggregate plan that uses inventory, regular time, and over time, and backorders. Subcontracting is not allowed. The regular time capacity is 15 units for quarters 1 and 2, 18 units for quarters 3 and 4. Overtime capacity is 3 units per quarter. The regular time cost is $2000 per unit, while the overtime cost is $3000 per unit. Backorder costs $300 per unit per quarter; inventory holding costs $100 per unit per quarter. The beginning inventory is zero. How many total units will be produced in quarter 1 for delivery in quarter 1? How many units in total will be used to fill back orders over the four quarters? What is the cost to produce one unit in Quarter 4 using overtime to fill a back order in quarter one?arrow_forward
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