Create a production plan from the information below. The new product, if you decide to build it,
Create a production plan from the information below.
The new product, if you decide to build it, and if selected by the client, will have a production requirement of 50 units in the first week followed by extensive testing and checking over the second week. Following this, is a run of 75 units in the third week followed by another week of testing. Then you must do a run of 100 units in the fifth week followed by another week of testing. Finally, you must do a run of 150 units in the seventh week followed by another week of testing. Provided no issues are recorded in the initial production runs (assume that is the case), production begins at a level of 200 units per week until the end of the quarter. Note that all quarters are only going to be 12 week segments to simplify things. As such each month has only 4 weeks.
After the initial production run, Benedict Engineering is asking that production increase by 50 units the first week of each month and hold at that level for that month then repeat each month until you reach 1000 units/month and then hold production at that level until the end of the first contract year. In the first week of the first month of Year 2 increase production by 750 units and hold that production rate.
Then continue increasing by 750 units to the production quantity beginning the first week of the first month of every odd numbered quarter until production reaches 3000 units per week. The production rate should be held at that level until the end of the contract. (HINT: make a detailed manufacturing plan.)
Your company is currently building tablet motherboards for a major OEM (Original Equipment Manufacturer) at rate of 2200 per month and all current projections are that this level will continue all year despite that the forecast for this year was to be at 3000/month. Next year’s production is calculated using an exponential smoothing calculation with an alpha of .1. This rate should be used for planning for the year 2022 and beyond.