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1.Matthew and Mark work for AMG, and want to do some aggregate planning for the manufacturing of brake calipers for Mercedes Benz S63 sedans. They

1.Matthew and Mark work for AMG, and want to do some aggregate planning for the manufacturing of brake calipers for Mercedes Benz S63 sedans. They figure the front brake calipers take 8 hours to forge and assemble while the rear calipers take 4 hours to forge and assemble. They pay their people $22.00 per hour and it costs them $900.00 to hire and $1,300 to fire each employee. They currently employ 3 people and have 129 front calipers in inventory and 113 rear calipers in inventory. Inventory carrying costs are $7.00 per labor hour. Assume 40 hours per week and 4 weeks per month.Please complete an aggregate planning table for level production with no back orders and determine total costs for 6 months. This problem is worth 10 points vs. the usual 5.

The following is the 6 month demand forecast in units:

Month

1

2

3

4

5

6

Front Calipers

200

750

330

550

240

180

Rear Calipers

230

730

340

500

250

220

You will need to first figure what the level production amount will be using the following information over 6 periods:

123456

Cumulative Demand

Beginning Inventory (Constant using the inventorylevels given)

Total Cumulative Production

Monthly Production

Use the following model to construct your analysis:

1 2 3 4 5 6

Beginning Inventory

Demand

Production

Ending Inventory

Hire Costs

Fire Costs

Wage Costs

Inventory Costs

Total Costs

2. John needs 40 Eternal Light flashlights by week 6. Each Eternal Light flashlight requires 3 bulbs, andeach bulbrequires 3 filaments. There are 90 bulbs and 10filaments in beginninginventory. John ordered an additional 20 bulbs and they are arriving in week 2. The lead time for the flashlights is 2 weeks, thelead time for the bulbs is 2 weeks, and the lead time for the filaments is 1 week.Please prepare:

A. The Product Structure Tree

B.AMaterial Requirements Plan for the flashlights, bulbs and filaments.

You can you the attached Blank Table if you wish.

Thank you.

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