Analytics Exercise 9-3 (Algo) Recently, Phil Harris, 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, are shown in the product structure diagram shown below Phil noted that the gear box 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 0.1, 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 bill-of-materials diagram. Note that two weeks are required to produce a batch of gear boxes and that all the gear boxes 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 needed for the production of gear bones in a given week must be delivered to the Subassembly Department stockroom before Monday morning of that week 1. Twenty gear boxes are on hand at the beginning of Week 1, and six gear boxes are currently on order to be delivered at the start of Week 2 2. Forty input shafts are on hand at the start of Week 1 and 24 are scheduled for delivery at the beginning of Week 2 2 Model 1000 master schedule 1 4 5 6 15 20 10 10 Week 1 Der 16 11 12 6 10 3 15 Model 1000 bill of material Engine sembly Crank Gearbox de 2 weeks Uvedit per engine In short Lead time wees Uued perge box hitially, assume that Phil wants to minimize his inventory requirements. Assume that each order will be only for what is required for a gle period Calculate the net requirements and planned order releases for the gear boxes and input shafts. Assume that lot sizing is ne using lot-for-lot ar Box Requirements 1 2 4 5 G 7 8 9 10 11 16 12 6 B 10 15 20 10 3 15 ek: 35 Requirements heduled Receipts ajected Available Balance Requirements inned Order Receipt inned Order Release Input Shaft Requirements 8 9 TO 11 12 Week Gross Requirements Scheduled Receipts Projected Available Balance Net Requirements Planned Order Receipt Planned Order Release Che 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 - $80/order Inventory carrying cost - 53/unit/week Setup - $50/order Inventory carrying cost - $2/unit/week Input Shaft b. Calculate a better schedule by reducing the number of orders and carrying some inventory. Specifically, plan to receive orders for gear boxes only in weeks 3, 6 and 10. Gear Box Requirements UIT Box Requirements 1 2 4 5 G 7 8 9 16 10 6 11 12 10 15 20 10 8 15 ek: - Requirements eduled Recept lected Available Balance Requirements ned Order Receipt nined Order Release Input Shaft Requirements 1 9 10 11 12 Week: Grass Requirements Scheduled Recept Projected Available Balance Net Requirements Planned Order Receipt Planned Order Release c. What are the cost savings with this new schedule. Cost of the schedule from part (a) Setup Inventory Total Gear Box Input Shaft Total Cost $ 0 Cost of the schedule you developed in part b. Setup Inventory Total Gear Box Input Shaft Total Cost $ 0 Savings with the new schedule. Savings