Please see attached assignment: Analytics Exercise An MRP Explosion Brunswick Motors Answer Questions 1-3. Please pay keen attention to the questions ask based on the case study. Thanks in advance for your assistance.Attachments:b
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Analytics Exe rcise: An MRP ExplosionBrunswick Mo tors
Recently, Phil Harris, the production control manager at
Bmnswick, read an article on time-phased requirements
shafis that are needed fbr the production of gear boxes in a
given week must be delivcred to the Suba.ssembly Department
stockroom before Monday moming of that week.
In prepiuing the MRP example Phil planned to use the
planning. He was curious about how this technique rnight
work in scheduling Brunswick’s engine assembly operations and decided to prepare an example to illustrate the
worksheets shown on the next page and to make the fbl-
ol iirne-phased requirernents planning.
Phil’s first step was to prepare a master schedule lor one
the engine Lypes produced by Brunswick: the Model
use
ol
lowing assumptions:
1
1000 engine. This schedule indicates the number of units of
thc Modcl 1000 cnginc to bc asscmbled cach weck during
the last 12 weeks and is shown below. Next, Phil decided to
simplify his rcquircments planning examplc by considering
only two of the many components that are needed to complcte thc asscmbly ol’thc Modcl I000 enginc. Thcsc two
components, the gear box and the input shaft. are shown
in the product structure diagram below. Phil noted that the
gear box is assembled by the Subassembly Department and
suhsequently is sent to the main engine assemhly line. The
input shaft is one of several component parts manufactured
by Brunswick that are needed to produce a gear box subassembly. Thus. levels 0, l, and 2 are included in the product structure diagrarn to indicate the three manufaururing
stages that are involved in producing an engine: the Engine
Assembly Department, the Subassembly Department, and
the Machirie Shop.
.
2.
Seventeen gear boxes are on hand at the beginning ol
Week 1, and five gear boxes are currently on order to
be delivered at the start of Week 2.
Forty input shafts arc on hand at thc staft of Week l,
and,22 are scheduled for delivery at the beginning ot’
Week 2.
1
initially, assume that Phil wants to minimize his inventory requircrrents. Assume that cach ordcr will bc
only for what is required for a single period. Using the
following fbrms. calculate thc net rcquirements and
planned order releases lbr the gear boxes and input
shafts. Assumc that lot sizing is clone using lot-for-lot
(L-4L).
2
Phil would like to cilnsider the costs that his accoun[ants are currently using for inventory carrying and
setup f’or the gear bores and input shafis. These costs
are as fbllows:
The manufacturing lead times required to produce the gear
box and input shali components are also indicated in the product struclure diagram. Note that two weeks are required to produce a batch ol’geir boxes antl ilrat all thc gear boxes must be
delivered to thc assembly line parts stockroom befbre Monday
moming o1’thc wcck in which they arc to be used. Likcwiso.
it takes three weeks to produce a lot ofinput shatts, and all the
PART
Gear Box
SetuP
:
I
2
3
4
lnventory carrying cost
1.5
5
7
10
6
7
8
15
2A
10
-5
9
Model 1000 product structure
Gcar hox
I-eadtirne:2weeks
Used:
1
per engine
Input shafr
Leadtime:3weeks
Used: 2 per gear box
–
S2lunit/week
:
S1/unit/week
SetuP: $45lorder
lnput Shaft
Model 1000 master schedule
Wcek
$9g/order
lnventory carrying cost
10
1l
1Z
8
7
t6
tease the
)
Eleston
MATERIAL REQUIREMENTS PLANNING
chapter 21
585
Given the cost structure, evaluate the cost of the
schedule from question 1. Assume inventory is val-
ued at the end of each week.
3 Find a better schedule by reducing the number of
orders and carrying some inventory. What are the
savings with this new schedule?
Engine assembly master schedule
Week
1
3
5
6
7
8
9
10
11
12
Quantity
Gear box requirements
Week
1
1
2
3
4
5
6
7
8
8
9
10
11
12
Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order release
Input shaft requirements
Week
1
2
3
4
5
6
7
8
9
1
1
2
Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order release
Practice Exam
1. Term used for a computer system that integrates ap- These are orders that have already been released and
plication programs for the different functions in a firm. are to arrive in the future.
2. Logic used to calculate the needed parts, components, 9. This is the total amount required for a particular item.
and other materials needed to produce an end item. 10. This is the amount needed after considering what we
3. This drives the MRP calculations and is a detailed plan currently have in inventory and what we expect to ar-
for how we expect to meet demand.
rive in the future.
4. Period of time during which a customer has a specified 11. The planned order receipt and planned order release
level of opportunity to make changes.
are offset by this amount of time.
5. This identifies the specific materials used to make each 12. These are the part quantities issued in the planned
item and the correct quantities of each.
order release section of an MRP report.
6. If an item is used in two places in a bill-of-materials, 13. Ordering exactly what is needed each period without
say level 3 and level what low-level code would be regard to economic considerations.
assigned to the item?
14. None of the techniques for determining order quantity
7. One unit of Part C is used in item A and in item B. Cur- consider this important noneconomic factor that could
rently, we have 10 As, 20 Bs, and 100 Cs in inventory. make the order quantity infeasible.
We want to
to ship 60 As and 70 Bs. How many addi-
tional Cs do we need to purchase?
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Selected Bibliography
Jacobs, F. R., W. L. Berry, D. C. Whybark, and T. E. Vollmann. Manufacturing
Planning and Control Systems for Supply Chain Management. 6th ed. Burr
Ridge, IL: McGraw-Hill, 2011.
Orlicky, J., C. Ptak, and C. Smith. Materials Requirements Planning. 3rd ed. New
York: McGraw-Hill, 2011. (This is the classic book on MRP).
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