Refer to the Excel speadsheet, Inventory Management, to complete the Analytics Exercise: An MRP Explosion - Brunswick
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plete the assembly of the Model 1000 engine. These two Questions 1 Initially, assume that Phil wants to minimize his in- ventory requirements. Assume that each order will be only for what is required for a single period. Using the following forms, calculate the net requirements and planned order releases for the gear boxes and input shafts. Assume that lot sizing is done using lot-for-lot (LAL). components, the gear box and the input shaft, are shown in the product structure diagram below. Phil noted that the gear box is assembled by the Subassembly Department and subsequently is sent to the main engine assembly line. The input shaft is one of several component parts manufactured by Brunswick that are needed to produce a gear box subas- sembly. Thus, levels 0, 1, and 2 are included in the prod- uct structure diagram to indicate the three manufacturing stages that are involved in producing an engine: the Engine Assembly Department, the Subassembly Department, and the Machine Shop. The manufacturing lead times required to produce the gear box and input shaft components are also indicated in the prod- uct structure diagram. Note that two weeks are required to pro- duce a batch of gear boxes and that all the gear boxes must be delivered to the assembly line parts stockroom before Monday morning of the week in which they are to be used. Likewise, it takes three weeks to produce a lot of input shafts, and all the 2 Phil would like to consider the costs that his accoun- tants are currently using for inventory carrying and setup for the gear boxes and input shafts. These costs are as follows: PART COST Gear Box Setup = $90/order Inventory carrying cost = $2/unit/week Input Shaft Setup = $45/order Inventory carrying cost = $1/unit/week Model 1000 master schedule Week 3 4 5 7 8 9. 10 11 12 Demand 15 10 15 20| 10 8 16 Model 1000 product structure Engine assembly Gear box Crankcase Lead time = 2 weeks Used: 1 per engine Input shaft Lead time = 3 weeks Used: 2 per gear box plete the assembly of the Model 1000 engine. These two Questions 1 Initially, assume that Phil wants to minimize his in- ventory requirements. Assume that each order will be only for what is required for a single period. Using the following forms, calculate the net requirements and planned order releases for the gear boxes and input shafts. Assume that lot sizing is done using lot-for-lot (LAL). components, the gear box and the input shaft, are shown in the product structure diagram below. Phil noted that the gear box is assembled by the Subassembly Department and subsequently is sent to the main engine assembly line. The input shaft is one of several component parts manufactured by Brunswick that are needed to produce a gear box subas- sembly. Thus, levels 0, 1, and 2 are included in the prod- uct structure diagram to indicate the three manufacturing stages that are involved in producing an engine: the Engine Assembly Department, the Subassembly Department, and the Machine Shop. The manufacturing lead times required to produce the gear box and input shaft components are also indicated in the prod- uct structure diagram. Note that two weeks are required to pro- duce a batch of gear boxes and that all the gear boxes must be delivered to the assembly line parts stockroom before Monday morning of the week in which they are to be used. Likewise, it takes three weeks to produce a lot of input shafts, and all the 2 Phil would like to consider the costs that his accoun- tants are currently using for inventory carrying and setup for the gear boxes and input shafts. These costs are as follows: PART COST Gear Box Setup = $90/order Inventory carrying cost = $2/unit/week Input Shaft Setup = $45/order Inventory carrying cost = $1/unit/week Model 1000 master schedule Week 3 4 5 7 8 9. 10 11 12 Demand 15 10 15 20| 10 8 16 Model 1000 product structure Engine assembly Gear box Crankcase Lead time = 2 weeks Used: 1 per engine Input shaft Lead time = 3 weeks Used: 2 per gear box
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Answer rating: 100% (QA)
Q 1 Week 1 2 3 4 5 6 7 8 9 10 11 12 Engine 15 5 7 10 0 15 20 10 0 8 2 16 Item GB OH 17 LT 2 SS 0 Q L4L 1 2 3 4 5 6 7 8 9 10 11 12 Gross Req 15 5 7 10 ... View the full answer
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