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Question 3: G)KANJAR Company is a manufacturer of light aircraft components in Oman. For the past two years of operation, the company is experiencing production backlog. A number of its customers are complaining for long delays of deliveries. This backlog is hurting the competitive advantage and the profitability of the company. In order to address this issue, the operation manager decides to implement the following possible alternatives, production overtime, subcontracting, and possible hiring of additional workers if necessary. The company always prepares a nine-month aggregate plan to decide the optimum way to determine requirements for planning purposes, although this is modified when the demand requirements change. The estimated demand for a particular unit for the period January through September is given in Table 03(a). The current workforce is based on the production level in the previous December. Operating data are given in Table 03/b). Requirement: Develop an aggregate plan AP based on level capacity strategy specified for the planning period. Subcontract to meet a 100% service level every month and no overtime, no hiring, and no termination. Show graphically the demand forecast, actual production output and ending inventory in single graph. Determine the total production cost for the specified period 17] Table 03(e) shows the demand orders of aircraft component of a local customer from January to September. Develop a master planning schedule MPS, assuming production lot size of 800 units, and beginning inventory intended for the particular customer is 150 units. In your MPS indicate the projected available balance PAB and the MPS per month TableQ3(a): Veatch Company Estimated demand for a product Jan Feb Mar May June July August Sep 1,935 2.000 2250 2.125 2.450 2.700 2.250 1900 1.650 April Table Q3b): Veatch Company Operating data Items Amount Initial inventory units 400 Stockout costs (OMR 125 Carrying cost. 30 (OMR uniomonth) Hiring cost per unit 70 (OMR unit Termination cost per unit 85 (OMRU Subcontract cost 85 (OMR Production is the 1.500 previous December In-house production cost 75 (OMR Labor hours/ unit 3.2 Workweek (hours) 40 Weeks month 4 Feb Table Q3(c): Veatch Company Operating data Mar April May 450 550 600 650 August 750 Sep 800 400 700 Salalah Electro-Mechanical Company manufactures a product POR345. The product POR345 consists of two PQB90 assemblies, three QR432 assemblies and one PR678 assembly. The PQ890 assembly consists of one P456, two 0921 and one Q239. The QR432 assembly consists of three P456, one R478 and wo S590. Prepare a Bil of Material (BOM) product tree for the product POR345. 121 Using Table 03(b)-1 and Table 03(b)-2 complete the Material Requirements Planning (MRP) calculations to determine when the Purchase orders should be placed for item S590. Note: The product POR345 are being sold complete as well as the spare parts (eg. items QR432. PO890. R478 etc) are being sold separately also. 14 Week PQR345 QR432 10 70 100 11 50 Table Q3(b)-1 12 120 13 60 250 14 90 15 100 150 16 40 100 Table Q3(b)-2 Item Lead Time (Weeks) On Hand Batch Size Safety Stock S PQR345 QR432 S590 200 200 700 200 300 0 150 2 2 600 350 [Total 16 marks] Question 3: (a) KANJAR Company is a manufacturer of light aircraft components in Oman. For the past two years of operation, the company is experiencing production backlog. A number of its customers are complaining for long delays of deliveries. This backlog is hurting the competitive advantage and the profitability of the company. In order to address this issue, the operation manager decides to implement the following possible alternatives; production overtime, subcontracting, and possible hiring of additional workers if necessary. The company always prepares a nine-month aggregate plan to decide the optimum way to determine requirements for planning purposes, although this is modified when the demand requirements change. The estimated demand for a particular unit for the period January through September is given in Table Q3(a). The current workforce is based on the production level in the previous December. Operating data are given in Table Q3(b). Requirement: Develop an aggregate plan AP based on level capacity strategy specified for the planning period. Subcontract to meet a 100% service level every month and no overtime, no hiring, and no termination. Show graphically the demand forecast, actual production output, and ending inventory in single graph. Determine the total production cost for the specified period. (ii) Table Q3(c) shows the demand orders of aircraft component of a local customer from January to September. Develop a master planning schedule MPS, assuming production lot size of 800 units, and beginning inventory intended for the particular customer is 150 units. In your MPS indicate the projected available balance PAB and the MPS per month. [3] TableQ3(a): Veatch Company Estimated demand for a product Jan Feb Mar April June July August Sep 1,935 2.000 2.250 2.125 2.450 2,700 2.250 1,900 1,650 May Table 03(b): Veatch Company Operating data Items Amount Initial inventory (units) 400 Stockout costs (OMR/unit) 125 Carrying cost 30 (OMR/unit/month) Hiring cost per unit 70 (OMR/unit) Termination cost per unit 85 (OMR/unit Subcontract cost 85 (OMR/unit) Production units the 1,500 previous December In-house production cost. 75 (OMR unit) Labor hours/ unit 3.2 Workweek (hours) 40 Weeks/month Jan Feb Table Q3(c): Veatch Company Operating data Mar April May June 450 550 600 650 July 700 August 750 Sep 800 400 450 (b) Salalah Electro-Mechanical Company manufactures a product PQR345. The product PQR345 consists of two PQ890 assemblies, three QR432 assemblies and one PR678 assembly. The PQ890 assembly consists of one P456, two Q921 and one Q239. The QR432 assembly consists of three P456, one R478 and two S590. (1) Prepare a Bill of Material (BOM) product tree for the product PQR345. [2] (ii) Using Table Q3(b)-1 and Table Q3(b)-2 complete the Material Requirements Planning (MRP) calculations to determine when the Purchase Orders should be placed for item S590. Note: The product PQR345 are being sold complete as well as the spare parts (e.g. items QR432, PQ890, R478 etc) are being sold separately also. Com Week PQR345 QR432 10 70 100 11 50 Table Q3(b)-1 12 120 13 60 250 14 90 15 100 150 16 40 100 Table Q3(b)-2 Item Lead Time (Weeks) On Hand Batch Size Safety Stock 200 0 PQR345 QR432 S590 2 200 200 300 600 150 2 700 350 [Total 16 marks] Question 3: (a) KANJAR Company is a manufacturer of light aircraft components in Oman. For the past two years of operation, the company is experiencing production backlog. A number of its customers are complaining for long delays of deliveries. This backlog is hurting the competitive advantage and the profitability of the company. In order to address this issue, the operation manager decides to implement the following possible alternatives; production overtime, subcontracting, and possible hiring of additional workers if necessary. The company always prepares a nine-month aggregate plan to decide the optimum way to determine requirements for planning purposes, although this is modified when the demand requirements change. The estimated demand for a particular unit for the period January through September is given in Table Q3(a). The current workforce is based on the production level in the previous December. Operating data are given in Table Q3(b). Requirement: (i) Develop an aggregate plan AP based on level capacity strategy specified for the planning period. Subcontract to meet a 100% service level every month and no overtime, no hiring, and no termination. Show graphically the demand forecast, actual production output, and ending inventory in single graph. Determine the total production cost for the specified period. [7] (ii) Table Q3(c) shows the demand orders of aircraft component of a local customer from January to September. Develop a master planning schedule MPS, assuming production lot size of 800 units, and beginning inventory intended for the particular customer is 150 units. In your MPS indicate the projected available balance PAB and the MPS per month. [3] TableQ3(a): Veatch Company Estimated demand for a product Jan Feb Mar April May June July August Sep 1,935 2,000 2,250 2,125 2,450 2,700 2,250 1,900 1,650 Table Q3(b): Veatch Company Operating data Items Amount Initial inventory (units) 400 125 30 70 85 Stockout costs (OMR unit) Carrying cost, (OMR/unit/month) Hiring cost per unit (OMR/unit) Termination cost per unit (OMR/unit) Subcontract cost (OMR/unit) Production units the previous December In-house production cost, (OMR/unit) Labor hours/ unit 85 1,500 75 3.2 Workweek (hours) 40 Weeks/month 4 Jan Feb Table Q3(c): Veatch Company Operating data Mar April May June 450 550 600 650 July 700 August 750 Sep 800 400 450 (b) Salalah Electro-Mechanical Company manufactures a product PQR345. The product PQR345 consists of two PQ890 assemblies, three QR432 assemblies and one PR678 assembly. The PQ890 assembly consists of one P456, two Q921 and one Q239. The QR432 assembly consists of three P456, one R478 and two S590. (1) Prepare a Bill of Material (BOM) product tree for the product PQR345. [2] (ii) Using Table Q3(b)-1 and Table Q3(b)-2 complete the Material Requirements Planning (MRP) calculations to determine when the Purchase Orders should be placed for item S590. Note: The product PQR345 are being sold complete as well as the spare parts (e.g. items QR432, PQ890, R478 etc) are being sold separately also. [4] Week PQR345 QR432 10 70 100 11 50 Table Q3(b)-1 12 120 13 60 250 14 90 15 100 150 16 40 100 Table Q3(b)-2 Item Lead Time (Weeks) On Hand Batch Size Safety Stock PQR345 QR432 S590 2 2 200 200 700 200 300 600 0 150 350 [Total 16 marks] Question 3: (a) KANJAR Company is a manufacturer of light aircraft components in Oman. For the past two years of operation, the company is experiencing production backlog. A number of its customers are complaining for long delays of deliveries. This backlog is hurting the competitive advantage and the profitability of the company. In order to address this issue, the operation manager decides to implement the following possible alternatives; production overtime, subcontracting, and possible hiring of additional workers if necessary. The company always prepares a nine-month aggregate plan to decide the optimum way to determine requirements for planning purposes, although this is modified when the demand requirements change. The estimated demand for a particular unit for the period January through September is given in Table Q3(a). The current workforce is based on the production level in the previous December. Operating data are given in Table Q3(b). Requirement: (i) Develop an aggregate plan AP based on level capacity strategy specified for the planning period. Subcontract to meet a 100% service level every month and no overtime, no hiring, and no termination. Show graphically the demand forecast, actual production output, and ending inventory in single graph. Determine the total production cost for the specified period. [7] (ii) Table Q3(c) shows the demand orders of aircraft component of a local customer from January to September. Develop a master planning schedule MPS, assuming production lot size of 800 units, and beginning inventory intended for the particular customer is 150 units. In your MPS indicate the projected available balance PAB and the MPS per month. [3] TableQ3(a): Veatch Company Estimated demand for a product Jan Feb Mar April May June July August Sep 1,935 2,000 2,250 2,125 2,450 2,700 2,250 1,900 1,650 Table Q3(b): Veatch Company Operating data Items Amount Initial inventory (units) 400 125 30 70 85 Stockout costs (OMR unit) Carrying cost, (OMR/unit/month) Hiring cost per unit (OMR/unit) Termination cost per unit (OMR/unit) Subcontract cost (OMR/unit) Production units the previous December In-house production cost, (OMR/unit) Labor hours/ unit 85 1,500 75 3.2 Workweek (hours) 40 Weeks/month 4 Jan Feb Table Q3(c): Veatch Company Operating data Mar April May June 450 550 600 650 July 700 August 750 Sep 800 400 450 (b) Salalah Electro-Mechanical Company manufactures a product PQR345. The product PQR345 consists of two PQ890 assemblies, three QR432 assemblies and one PR678 assembly. The PQ890 assembly consists of one P456, two Q921 and one Q239. The QR432 assembly consists of three P456, one R478 and two S590. (1) Prepare a Bill of Material (BOM) product tree for the product PQR345. [2] (ii) Using Table Q3(b)-1 and Table Q3(b)-2 complete the Material Requirements Planning (MRP) calculations to determine when the Purchase Orders should be placed for item S590. Note: The product PQR345 are being sold complete as well as the spare parts (e.g. items QR432, PQ890, R478 etc) are being sold separately also. [4] Week PQR345 QR432 10 70 100 11 50 Table Q3(b)-1 12 120 13 60 250 14 90 15 100 150 16 40 100 Table Q3(b)-2 Item Lead Time (Weeks) On Hand Batch Size Safety Stock PQR345 QR432 S590 2 2 200 200 700 200 300 600 0 150 350 [Total 16 marks] Question 3: (a) KANJAR Company is a manufacturer of light aircraft components in Oman. For the past two years of operation, the company is experiencing production backlog. A number of its customers are complaining for long delays of deliveries. This backlog is hurting the competitive advantage and the profitability of the company. In order to address this issue, the operation manager decides to implement the following possible alternatives; production overtime, subcontracting, and possible hiring of additional workers if necessary. The company always prepares a nine-month aggregate plan to decide the optimum way to determine requirements for planning purposes, although this is modified when the demand requirements change. The estimated demand for a particular unit for the period January through September is given in Table Q3(a). The current workforce is based on the production level in the previous December. Operating data are given in Table Q3(b). Requirement: (i) Develop an aggregate plan AP based on level capacity strategy specified for the planning period. Subcontract to meet a 100% service level every month and no overtime, no hiring, and no termination. Show graphically the demand forecast, actual production output, and ending inventory in single graph. Determine the total production cost for the specified period. [7] (ii) Table Q3(c) shows the demand orders of aircraft component of a local customer from January to September. Develop a master planning schedule MPS, assuming production lot size of 800 units, and beginning inventory intended for the particular customer is 150 units. In your MPS indicate the projected available balance PAB and the MPS per month. [3] TableQ3(a): Veatch Company Estimated demand for a product Jan Feb Mar April May June July August Sep 1,935 2,000 2,250 2,125 2,450 2,700 2,250 1,900 1,650 Table Q3(b): Veatch Company Operating data Items Amount Initial inventory (units) 400 125 30 70 85 Stockout costs (OMR unit) Carrying cost, (OMR/unit/month) Hiring cost per unit (OMR/unit) Termination cost per unit (OMR/unit) Subcontract cost (OMR/unit) Production units the previous December In-house production cost, (OMR/unit) Labor hours/ unit 85 1,500 75 3.2 Workweek (hours) 40 Weeks/month 4 Jan Feb Table Q3(c): Veatch Company Operating data Mar April May June 450 550 600 650 July 700 August 750 Sep 800 400 450 (b) Salalah Electro-Mechanical Company manufactures a product PQR345. The product PQR345 consists of two PQ890 assemblies, three QR432 assemblies and one PR678 assembly. The PQ890 assembly consists of one P456, two Q921 and one Q239. The QR432 assembly consists of three P456, one R478 and two S590. (1) Prepare a Bill of Material (BOM) product tree for the product PQR345. [2] (ii) Using Table Q3(b)-1 and Table Q3(b)-2 complete the Material Requirements Planning (MRP) calculations to determine when the Purchase Orders should be placed for item S590. Note: The product PQR345 are being sold complete as well as the spare parts (e.g. items QR432, PQ890, R478 etc) are being sold separately also. [4] Week PQR345 QR432 10 70 100 11 50 Table Q3(b)-1 12 120 13 60 250 14 90 15 100 150 16 40 100 Table Q3(b)-2 Item Lead Time (Weeks) On Hand Batch Size Safety Stock PQR345 QR432 S590 2 2 200 200 700 200 300 600 0 150 350 [Total 16 marks]