CHAPTER 7 CASE ANALYSIS QUESTIONS

PLEASE NEED THE SOLUTION IN EXCEL

USE THE TEMPLATE Dougs Dens doghouses have become wildly popular. In fact, demand has increased to the values below. Revised Master Schedule for Dougs Dens (DO NOT USE Table 7.25) Week 1 2 3 4 5 6 7 8 Fidos Favorite 40 50 30 30 40 60 30 40 Charlies Castle 30 30 20 50 40 20 20 40 Because of product returns and other factors, there is a current on-hand balance of 100 and 60 units for Fidos Favorite and Charlies Castle, respectively. To increase efficiency, Dougs has started producing basic floor and frame subassemblies in batches of 50. Due to larger volume production, lead times have increased to 1 week for basic floor subassemblies and frame subassemblies. (The template has all this necessary information.) Dougs has started purchasing corner brackets in quantities of 1000, nails in quantities of 5000, and 2x4s in quantities of 800 in order to obtain better pricing. The lead-time for 2x4s has gone to 1 week. (The template has all this necessary information.) Figure 7.18 (p. 278) is necessary to develop the material plan. Questions:

1. Is Dougs Dens a business that can effectively utilize MRP for planning its inventory? Why or why not?

2. Develop a material plan for Dougs Dens, including: Fidos Favorite Charlies Castle BASIC floor sub-assembly (1 per Fido) BASIC roof sub-assembly (1 per Fido) DELUX floor sub-assembly (1 per Charlie) DELUXE roof sub-assembly (1 per Charlie) Frame sub-assembly (1 per Fido and 1 per Charlie) Corner brackets (8 per Frame sub-assembly) 2-Inch Nails (24 per Frame sub-assembly) 6-foot 2x4s (12 per Frame sub-assembly)

3. Dougs is concerned about carrying costs (physical storage, potential for damage, and cost of capital) for 2x4s. Compare the average inventory of 2x4s with a lot size of 800 versus a lot for lot policy and a lot size of 400.

4. Discuss how Doug should go about implementing MRP. What type of training should he provide? What kind of software and equipment? How long should he allow for the implementation?

YOU SHOULD HAVE 10 MRP RECORDS (+2 more for #3) (example below)

Fido's Favorite L4L	100	onhand
Week	1	2	3		4	5	6	7	8
Gross requirements	40	50	30		30	40	60	30	40
Scheduled receipts
Planned OH Inventory	60	10	0		0	0	0	0	0
Planned receipts			20		30	40	60	30	40
Planned Order release			20		30	40	60	30	40