Question: i need to write write a written report for my A10,A12 MRP, can you help me write it, and i will provide the information to









4.2 Components A10, A12 Susmarski Smoke Detector Company (SSDC) produces two models of high-quality smoke detector units, among many other products, and it uses Material Requirements Planning (MRP) and Capacity Requirements Planning (CRP) in the process. Both of these units would more accurately be described as fire detectors, since they react to more than just smoke during a fire. In particular, both units will react to excessive heat. The basic unit reacts to both smoke and heat, so it is most effective at detecting smoldering fires, which produce significant levels of smoke. The deluxe unit will also react to the presence of excessive amounts of ionized material in the air, which makes it more capable of detecting burning fires, which do not produce as much smoke. All smoke detector units are assembled at SSDCS assembly facility. Some components are purchased from outside vendors, and a department within SSDC manufactures some of the components. The basic model (denoted as part number AI) is assembled from two subassemblies: a base subassembly (A.10) and a cover subassembly (AII). The A10 and AII subassemblies are put together by a snap fit to produee an A1, and the process requires no additional parts. The Al0 subassembly is produced in batches, and it is stored until it is needed for a production run of Als. The A10 is assembled from an A100 subassembly and components A101 and A102. The A100 subassembly is produced in batches in an earlier step, and it is then stored until it is needed for a production run of one either one of SSDC's smoke detectors. The A100 is produced by taking an A 1000 plastic frame unit and using a forced fit to attach an A1001 circuit board to it, so no additional parts are required for this step. The A 1001 circuit board is purchased from an outside supplier with a very loud audio alarm already attached to it. The assembly of the A10 uses a previously assembled A100 and artaches both an A101 heat detector and an A102 smoke detector to the circuit board in the A100 unit. The A101 and A102 components are attached to the A 100 subassembly by a soldering process that requires no additional parts when assembling an A10. The cover subassembly (A11) is produced from two components: a plastic cover unit (A 103) and an identifying self-adhesive plate (A 104) that is attached to the cover unit. The A1 unit is powered by barteries that, as might be gaessed, are not supplied by SSDC. The material structure tree for an A1 is shown in Exhibit 15.1. EXHIBIT 15 Material Structure Trees for Al and A2 SSDC's deluxe model smoke detector (A2) is significantly more sophisticated than the basic A1 unit. The A2 includes backup components for added security, contains the more reliable ion detectors, and has a lighting unit that comes on when the alarm is activated. The A2 is assembled in a manner similar to that of the A1 unit, but it contains more components. The A2 unit is produced by using a snap fit to put together two subassemblies: an A12 base unit and an A13 cover unit. The A12 base unit is put together in the same fashion as the A10 base unit, by taking a previously assembled A100 subassembly and attaching two A101 heat detector components, two A105 ion detector components, and an A106 lighting unit to the circuit board in the A100 subassembly. The A 13 cover assembly contains two components: an A103 plastic cover unit and an A107 self-adhesive identification plate. The A2 unit is directly hard-wired into the home by the consumer or the builder. A material structure tree for an A2 is shown in Exhibit 15.1. Forecasted demand values for both A1 and A2 are shown in Exhibit 15.2 for each month of the next year. Items that are assembled by SSDC(A1,A2,A10,A11,A12,A13, and A100 ) can be produced with a minimal setup cost and they can be produced in lots of any quantity. SSDC has many other uses for the assembly site, and there is a one-month lead time required for a run of any of these subassemblies. However, lot-for-lot shipment sizes can easily be provided. Multiple runs of different assembled items can be done in the facility during the same month. Three components that are manufactured by a separate department at a different location within SSDC (A101, A102, and A105) are produced at a much slower rate than assembled units. A101, A102, and A105 components are manufactured at daily rates of Case 15 Susmarski Smoke Detector Co. 67 XHIBIT 15.3 Acquisition and Iaventory Information for SSDC Components This testing phase is very important to SSDC since the firm is committed to producing a quality product that has the potential to save lives. The manufacturing site operates five days per week, with an average of four weeks per month (SSDC operates 240 working days per year, and these are the only days during which components are required). The manufacturing site never operates on an overtime basis, and due to other commitments within SSDC, only 50% of its operating time within any given month can be used to meet the needs of producing components for smoke detectors. If two runs of A 101, two runs of A 102, or two runs of A 105 are made within the same month, they can be run consecutively, and the initial setup cost will not be incurred for the second run. If the 50% capacity limit of the manufacturing facility is exceeded in any month for the total requirements for A101,A102, and A 105 components, a production run of one of them can be moved back to the previous month. Additional holding costs will be incurred for keeping the lot in inventory for an additional month, but a setup cost could be eliminated if the component that is shifted is already scheduled for production in the previous month. There are difficulties with producing components earlier than is required because the manufacturing facility has limited storage space. Shifting a production run back more than one month is not practical. The process of moving production runs back to the month before they are scheduled will only be considered for months when the 50% capacity restriction will be violated with desired scheduling from MRP. All other components are purchased from outside vendors. Lot sizes for all manufactured and purchased items are obtained by appropriate Economic Order Quantity (EOQ) relationships to minimize the total relevant cost. All necessary information for obtaining EOQs for components is given in Exhibit 15.3. In obtaining EOQ order sizes, lot sizes should be rounded to the nearest multiple of 500 units (round up or down to the nearest multiple of 500 units). Exhibit 15.3 also gives lead times and initial inventories for all components and subassemblies. Excess inventories of assembled items have accumulated because previous actual monthly demand was less than forecasted demand, from random effects. The existence of excess current inventories should not influence our estimates of annual demand for EOQ calculations, so annual-demand estimates for components should be based on the predicted annual demand for A1 and A2, and existing inventories should be ignored. Any excess accumulated inventory will be used up before any more orders are placed, and the business will then continue on an ongoing basis with the expected annual demand values. The manager of SSDC wants to develop an MRP schedule for all of the components for a production schedule for A1 and A2 to meet forecasted demand for the next year. Due to variability in forecasts, the scheduled ending inventory for each of Al and A2 in each month should be 25% of the forecasted demand for the following month. The resulting MRP must not be in violation of the 50% facility time limits allowed in the manufacturing facility for the total requirements for the production of A101, A102, and A105. The lead times for component delivery make it impossible to obtain monthly schedules for every component for every month of the year. However, an MRP schedule should be obtained for each component for as many months into the current year as can be done, given the existing forecasts for A1 and A2, without trying to project the forecasts of A1 and A2 any farther out in time. Table 1: Model A1 MPS Table 2: Model 2 MPS \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline lodel A2 MPS & & & & & & & & & & & & & \\ \hline Lead time 1 month & 23 & \begin{tabular}{l} Lot for \\ Lot \end{tabular} & & 8 & at. & & & & & & & & \\ \hline \begin{tabular}{l} Current inventory \\ 14000 \end{tabular} & & & & & & & & & & & & & \\ \hline & & & 2 & & & & & & 12 & 76 & 5 & & \\ \hline Month & 0 & 1 & 2 & 3 & 4 & 82 & & 137 & 8 & & 10 & 11 & 12 \\ \hline Forecasted demand & 2 & 9000 & 7000 & 5000 & 3500 & 3000 & 2000 & 1500 & 1000 & 3000 & 4000 & 4500 & 5000 \\ \hline \begin{tabular}{l} Committed customer \\ orders \end{tabular} & & 0 & 0 & 0 & 28 & 0 & & +0 & 0 & 0 & 0 & & \\ \hline Frojected on Hand & & 0 & & & += & & & (1) & & & & & \\ \hline Encing inveniory & 14000 & 5000 & 1250 & 875 & 750 & 500 & 375 & 250 & 750 & 1000 & 1125 & 1250 & \\ \hline \begin{tabular}{l} Net inventory before \\ MPS \end{tabular} & & 5000 & -2000 & -3750 & -2625 & -2250 & -1500 & -1125 & -750 & -2250 & -3000 & -3375 & 3750 \\ \hline \begin{tabular}{l} MPS quanty \\ received \end{tabular} & & 0 & 3250 & 4625 & 3375 & 2750 & 1875 & 1375 & 1500 & 3250 & 4125 & 4625 & 3750 \\ \hline MPS start & & 3250 & 4625 & 3375 & 2760 & 1875 & 1375 & 1500 & 3250 & 4125 & 4625 & 3750 & \\ \hline ATP inventory & & 14000 & 3250 & 4625 & 3375 & 2750 & 1875 & 1375 & 1500 & 3250 & 4125 & 4625 & 3750 \\ \hline \begin{tabular}{l} Scheduled ending \\ inentory \end{tabular} & & 1750 & 1250 & 875 & 750 & 500 & 375 & 250 & 750 & 1000 & 1125 & 1250 & \\ \hline \begin{tabular}{l} (25\% of forecasted \\ demand of the nex \\ monn) \end{tabular} & & & & & & & & & & & & & \\ \hline \end{tabular} A master production schedule(MPS) is required if A1 and A2 each to develop an MRP schedule for all of the components. A1 and A2 are litems assembled by SSDC so it can be produced in lots of any quantity. The lot-for-lot approach is used for the lot size. Forecasted demand, current inventory and lead time for A1 and A2 Smoke Detector Units are given. Forecasted demands and current inventory are inserted first. Note that projected on-hand inventory is the beginning inventory of the next month. Net inventory before MPS is calculated with a formula Min (0, beginning inventory - forecasted demand) - if the result of beqinning inventory - forecasted cemand is negative, net inventory before MPS s the negative number calculated. If the result is positive, net inventory before MPS is 0 . 4 As for the MPS recelved, we considered not only the net inventory before MPS but also the forecastec demand for the next month. Due to variability in forecasts, the scheduled ending inventory for each of Al and A2 in each month should be 25% of the forecasted demand for the following month. Therefore, the MPS recelved of each month equals to net inventory before MPS +25% of the forecasted demand for the following month. Note that if net inventory before MPS is negative, change it to a positive number in order to turn it into the net requirement. Besices, MPS starts a month before it can be received because the lead time is one month MPS start equals to MPS received for the next month
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
