For this assignment you are required to$-$ Standard deviation of demand is $10$ units.

$-$ Assume lead time is two weeks.

$-$ The sequence of the analysis in this section:

$$ Develop a product$/$service$.$ You should first critically review the processes needed to develop a product by identifying the customer needs, defining the appropriate level of product$/$service quality, and considering the other perspectives, i$.$e$.,$ liability issues, ethical considerations, sustainability issues, costs and profits. Apply Kano model to classify the quality of your product$/$service$.$ Then develop the house of quality for your product$/$service with clear explanation.

$$ Complete analysis for inventory management section. This includes the issues of order size, reordering point, safety stock etc. for the product you aim to design.

$$ Define the Bill of Material for the product you aim to design. You must use either assembly diagram or product structure tree both discussed in week $9.$

$$ Develop the MRPs for the proposed product$/$service$.$

$$ Investigate top two challenges and discuss directions that relate to operations management of your product$/$service to effectively and efficiently manage it$.$

Example:

You are planning to open a bottling plant and sell water bottles to RMIT students. After the product design stage, you decide to sell the water bottles which are cheaper than other brands in the market like Evian, Alpha, Mount Franklin or Pump with funny design that attracts young people. The bill of material includes water, labels and plastic bottle and you forecast that the demand is $10,000$ bottles per month. You then search for cheap suppliers of those components, obtain the data and start the plan for MRP and inventory management. How should your product design and$/$or production plan and$/$or inventory management policies be adapted to deal with this challenge?

For Inventory Management section of your report:

$-$ All calculations for the Inventory Management section are just for the final product $($Level zero in BOM$).$

$-$ The average weekly demand of your product is the last two digit of your student number. If the last two digits of your student number are $00$ then use $50$ as the average weekly demand of your product. Note: this is average weekly demand not exact demand.

$-$ Assume your company operates whole year so use $52$ weeks for a singly year.

$-$ The price of your product is the last two digits of your student number e$.$g$.,$ if your student number is s$123406$ then the price of your product would be $6$ dollars. Note: If the last two digits of your student number are $00$ then use $5$ dollars as the product price. The computed price might seem too high or too low for your chosen product. Please note that the price is just a number you should use to complete the analysis. The important thing is that your calculations and steps are correct.

$-$ The Ordering cost is $5$ percent of the product price.

$-$ The holding cost is $10$ percent of the product price.

$-$ service level is $0\mathrm{.}01$ percent

$-$ Standard deviation of demand is $10$ units.

$-$ Assume lead time is two weeks.

$-$ The sequence of the analysis in this section

For MRP section of your report:

$-$ Assume that the gross requirements for weeks $33$ and $34$ for the final product $($level zero in Bill of Material$)$ is $10$ percent of the yearly demand. Round it up or down in case of decimal point. e$.$g$.,$ if yearly demand is $52$ units, then the gross requirements for week $33$ and $34$ will be $5$ units, respectively.

$-$ Projected on$-$hand inventory for the final product $($level zero in Bill of Material$)$ in week $31$ is $2$ percent of the yearly demand. Round it up and down in case of decimal point.

$-$ Scheduled receipt of the final product in Week $32$ is $2$ percent of the yearly demand. Round it up and down in case of decimal point.

$-$ Assume lead time is two weeks for all components in your BOM.

$-$ BOM must have three levels. Complete three MRPs for three products$/$components $($one product$/$component from Level Zero, $1$ and $2$ in Bill of Material$).$ No more than three MRPs will be accepted. In case of more MRPs$,$ the first three MRPs will be marked.

$-$ You must use the following lot sizing techniques in each MRP: for Level $0$ use multiple of $5,$ For Level $1$ and $2$ use L$4$L$.$

$-$ Compute the total cost for each MRP$.$

$-$ Use MRP template discussed in tutorial Week $9.$