Question: Contractor XYZ is working on a construction project where large number of doors to be installed. The master schedule for the door assembly shows 1

Contractor XYZ is working on a construction project where large number of doors to be installed. The master schedule for the door assembly shows 100 units to be made in week 11,220 units in week 14 and 150 units in week 16. There are currently 50 units of the product in the inventory. Each door takes a week to assemble from 3 units of part ZZ25 and 4 units of part FN24. Each unit of part ZZ25 is made in one week from 2 units of material DD and 5 units of material EE. Part FN24 is assembled in 2 weeks from 3 units of component FF. Lead times for DD, EE and FF are 3,2 and 1 weeks respectively. Current stocks are 200 units of ZZ25,250 of FN24,120 of DD,400 of EE and 200 of FF. Thecompany keeps minimum stocks of 80 units of the door assembly, 40 units of DD,100 of EE and 100 of FF. An order placed with a sub-contractor for 200 units of FN24 is expected to arrive in period 8. A. Draw the product structure for the door assembly. B. Given an annual demand of 5,000 units for product EE, a reordering cost of $25 per order, and a holding cost of $1 per unit per year, determine the optimal lot size. C. Develop a weekly production and ordering schedule to satisfy the demand for the product. Determine how many of each part or subassembly must be produced or ordered each week to satisfy MPS.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!