WonderWorld is a company that produces household furniture. The company wishes to implement an MRP system...

  

Transcribed Image Text:

WonderWorld is a company that produces household furniture. The company wishes to implement an MRP system for one of its products, identified as the "Saturn" kitchen cabinet. The master production schedule (MPS) for this product for the next 12 weeks is given in Table 1 below. Week MPS 1 Table 1: MPS for the Saturn Kitchen Cabinet 7 8 9 11 3336 2700 2350 3XXX 2980 2 3 4 5 6 10 12 · · · · The planned production in week 11 of the MPS is given as 3XXX. You are required to replace XXX with the last 3 digits of the student's ID number. For example, if the student's ID number is 200987, the planned production for week 11 will become 3987 units. The Saturn kitchen cabinet consists of three sub-assemblies: S1, S2 and S3. Sub-assembly S1 requires components C1, C3 and part P1, while sub-assembly S2 requires components C2 and C4. Component C2 is made from parts P1, P2 and P3. The beginning inventory, lot-sizing rule, lead time and usage for all of the items are given in Table 2 on the following page. The ordering (setup) cost and the holding cost per unit per period for each of the items in Omani Rials is also provided in Table 2. (a) Develop a product structure tree for the Saturn kitchen cabinet. (b) Complete an inventory record for each of the items listed in Table 2. (c) Develop an ordering schedule for the production horizon (What items will be ordered each week, and in what quantities?) (d) Compute the total cost over the 12-week horizon. Note: Item Beginning Inventory Lot sizing Rule Usage Z101 L4L S1 FOQ=2000 L4L S2 S3 POQ=3 L4L C1 C2 See note FOQ=3000 L4L FOQ=1250 POQ=2 See note C3 C4 P1 P2 P3 Table 2: Saturn Kitchen Cabinet 0 175 0 80 150 100 0 200 350 570 100 - 1 3 2 1 2 3 2 5 4 7 Lead Time Order Cost Holding Cost /period (weeks) (OMR) (OMR/unit/week) 1 95 2.5 3 22 1.25 2 30 0.75 2 60 1.10 1 15 0.010 2 18 0.035 2 12 0.005 1 10 0.015 1 4 2 3 1 7 0.04 0.05 0.03 The lot-sizing rule for items C2 and P3 must be determined by selecting the best alternative from the Silver-Meal, Least Unit Cost, L4L, and EOQ (economic order quantity) heuristics. WonderWorld is a company that produces household furniture. The company wishes to implement an MRP system for one of its products, identified as the "Saturn" kitchen cabinet. The master production schedule (MPS) for this product for the next 12 weeks is given in Table 1 below. Week MPS 1 Table 1: MPS for the Saturn Kitchen Cabinet 7 8 9 11 3336 2700 2350 3XXX 2980 2 3 4 5 6 10 12 · · · · The planned production in week 11 of the MPS is given as 3XXX. You are required to replace XXX with the last 3 digits of the student's ID number. For example, if the student's ID number is 200987, the planned production for week 11 will become 3987 units. The Saturn kitchen cabinet consists of three sub-assemblies: S1, S2 and S3. Sub-assembly S1 requires components C1, C3 and part P1, while sub-assembly S2 requires components C2 and C4. Component C2 is made from parts P1, P2 and P3. The beginning inventory, lot-sizing rule, lead time and usage for all of the items are given in Table 2 on the following page. The ordering (setup) cost and the holding cost per unit per period for each of the items in Omani Rials is also provided in Table 2. (a) Develop a product structure tree for the Saturn kitchen cabinet. (b) Complete an inventory record for each of the items listed in Table 2. (c) Develop an ordering schedule for the production horizon (What items will be ordered each week, and in what quantities?) (d) Compute the total cost over the 12-week horizon. Note: Item Beginning Inventory Lot sizing Rule Usage Z101 L4L S1 FOQ=2000 L4L S2 S3 POQ=3 L4L C1 C2 See note FOQ=3000 L4L FOQ=1250 POQ=2 See note C3 C4 P1 P2 P3 Table 2: Saturn Kitchen Cabinet 0 175 0 80 150 100 0 200 350 570 100 - 1 3 2 1 2 3 2 5 4 7 Lead Time Order Cost Holding Cost /period (weeks) (OMR) (OMR/unit/week) 1 95 2.5 3 22 1.25 2 30 0.75 2 60 1.10 1 15 0.010 2 18 0.035 2 12 0.005 1 10 0.015 1 4 2 3 1 7 0.04 0.05 0.03 The lot-sizing rule for items C2 and P3 must be determined by selecting the best alternative from the Silver-Meal, Least Unit Cost, L4L, and EOQ (economic order quantity) heuristics.