Question
A manufacturing company produces a product (labelled as product A) that comprises a number of different components with the following description. Items D and F
A manufacturing company produces a product (labelled as product A) that comprises a number of different components with the following description. Items D and F are made of one unit of item E. Item B are made of three units of item D and one unit of item F. Item C is made of three units of item B, one unit of item D, and 4 units of item E. The end product A is made of two units of item B and one unit of item C. The on-hand inventories for items A, B, D, E and F are 15, 10, 90, 100, and 40, respectively. All items can only be produced in-house except for items E where the company sometimes can purchase this item from its sole supplier. The company has a scheduled receipt for item E of 30 units in Week 1. The production lead-time for items A, B, E, and F is two weeks; for item C the lead-time is one week, and for item D it is three weeks. Lot-for-lot production quantity is applied for items C, E, and F, while the lot sizes for producing items A, B, and D are 20, 40, and 30 units respectively. The customer places an order of 25 units of A to be delivered in Week 10.
a. Draw the Bill of Material of the above product using low-level coded
b. Construct Master Production Scheduling for the above order
c. If the company has to deliver the order on Week 9, is it possible for the company to fulfill the order? Is there anything that the company can do to meet the delivery date?
d. Construct the Master Production Schedule for delivering the original order; however, the maximum production capacity for item E is now limited to 50 units per week
e. An engineering design consultant approaches the company and offers a new machine that could reduce the lead-time of item F by one week. Is it worth investing in this new machine? Explain your answer clearly
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