ToysPlus is a small company in the toy industry. They control the manufacturing of toys by using an MRP System. Management wants to improve service levels and inventory turns by doing a better job of planning and scheduling production. The case provides data on three toys which are manufactured including the forecasts, costs, bill of materials, and planning factors for these toys.
The purpose of this case is to illustrate the principles of scheduling with an MRP system. An Excel spreadsheet is provided which accompanies the text to provide the MRP logic. The student inputs forecasts, costs and a master schedule. The spreadsheet then performs detailed parts explosions. The student must analyze the resulting schedules and re-plan until an acceptable MRP plan is obtained. Some organizational issues are also presented in the case, which are encountered in using a formal MRP system. 1. Calculate economic order quantities for each of the three types of toys. The EOQ formula is recommended from the supplement to Chapter 14 that considers uniform lot delivery of toys.
2. Prepare a master production schedule for the next 6 weeks using the EOQ's calculated in Question 1 and a work force of 10 employees. What inventory turnover ratio is achieved by this master schedule? How does this turnover compare with past levels and with management's goals?
3. Prepare a parts explosion to support the master schedule. What parts should be ordered each week? Are there enough planned orders in time to support your master schedule?
4. What should Andrea Meline do in order to meet the inventory and service goals stated by management? Try another master schedule that is feasible using available parts and has a turnover of 15.
5. How should Andrea deal with the organization issues presented in this case?