Analytics Exercise 21-3 (Algo) Recently, Phil Hatris, the production control manager at 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 on the next page 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 shown in the product structure diagram below. Phil noted that the gearbox 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 subassembly. Thus, levels o, 1 and 2 are included in the product structure diagram to indicate the three manufacturing stages that are involved in producing an engine the Engine Assembly Department, the Subassembly Department, and the Machine Shop The manufacturing lead times required to produce the gear box and input shaft components are also indicated in the product structure diagram. Note that two weeks are required to produce a batch of gent boxes and that all the gear bones 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 the shafts that are needed for the production of gear boxes in a given week must be delivered to the Subassembly Department stockroom before Monday morning of this week in preparing the MRP example Phil planned to use the worksheets shown and to make the following assumption 1. Twenty two gear boxes are on hand at the beginning of Week 1 and night gearboxes are currently on ore to be delivered at the Start of Week 2 In preparing the MRP example Phil planned to use the worksheets shown and to make the following assumptions 1. Twenty two gear boxes are on hand at the beginning of Week 1, and eight gear boxes are currently on order to be delivered at the start of Week 2 2. Forty five input shafts are on hand at the start of Week 1, and 25 are scheduled for delivery at the beginning of Week 2 1 Model 1000 master schedule 2 3 4 5 6 8 10 11 12 512 10 12 22 10 . 5 20 Den 10 Model 1000 product structure Enginembly Gewbox Lede wees Uued per engine South Used 2 box his inventory requirements. Assume that each order will be only for what is required for 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. These costs are as follows: PART Gear Box COST Setup = 585/order Inventory carrying cost-$2/unit/week Setup - $40/order Inventory carrying cost - $2/unit/ Input Shaft Suppose least-total-cost lot sizing is to be used. Using the planned order receipts shown below, complete the remainder of the gear box and input shaft tables. (Leave no cells blank.be certain to enter "o" wherever required) Gear Box Requirements 6 19 10 11 12 10 5 12 10 0 17 22 10 0 0 20 1 Grossments Scheduled recipe Projected available balance Nereuments Planned order receipt pand ordere Input Shaft Requirements 10 Won Gross requirements Scheduled receipts Projectod available balance Not requirements Planned order receipt Plannod order release 0 ol 0 50 0 0 0 0 0 0 0 c. What are the savings with the new schedule? Assume inventory is valued at the end of each week Cost of the schedule from part (0) Total Setup Cost Inventory Gearbox Input shat Total cost Inpur smart Total cost Cost of the schedule using least-total-cost lot sizing bol Total Setup Cost Inventory Gear box Input shaft tences Total cost Savings with the new schedule Savings