Introduction and Background: The Beerstore packages specialty beers into gift packs and sells them via the Internet. Its most popular items are the Northwest Grunge Sampler and the Deep South Hooch Sampler. The product structure trees are given in Figure 1.1 Northwest Grunge Deep South Hooch Sampler Sampler Walla Walla Mud Mt. Hood Dredge Tacoma Terror Box Box Tuscaloosa Meridian Mothball Augusta Augsbar Tornado 1 Label Label Label Label Label Label Figure 1.1 Two of each beer is included in each of the samplers (i.c., cach sampler has six beers total). The Aggregate Production Plan The Beerstore splits the forecast they develop for their gift packs over the next 4 quarters. They estimate their demand for the year at 6000. The following table contains the fraction of demand by quarter. Apply the forecast to these percentages. Quarter Fraction of Demand 1/6 2 3 7/30 1/3 4/15 The cost of carrying inventory is calculated at $5.00 per unit per period. Jody has been told they cannot afford stockouts and there is no backordering. At the APP level no work can be subcontracted and overtime work by employees is not allowed. However, the company will allow extra inventory to carry over from quarter to quarter and year to year. The Beerstore has 5 workers on staff now and each worker can produce on average 100 samplers per quarter. The labor force is fairly liquid and workers can be readily hired or laid off. Hiring costs are SS00 per worker and layoff costs are $700 per worker. The workforce at the end of the 4 quarter will be retained. Her boss suggested they just follow the demand, a chase strategy, through the quarters to minimize un-needed inventory. However, the company HR department always complains about hiring and firing costs so they have suggested a pure level strategy. Jody believes that there is a better "hybrid" strategy she could develop that is lower cost than either of the other two plans. Jody needs to develop an aggregate production plana (APP) for the data & finds a plan that minimizes costs but complies with all company policies. Help Jody out. The Production Problem Jody wishes to use the forecast just developed to help make an Aggregate Production Plan that will then become a Master Production Schedule and drive a Materials Requirements Plan. Jody knows that weekly demand for the gift packs is split evenly between the two samplers (ie., 50% of demand is Grunge and 50% Deep South). In addition, the following weekly breakdown, in percentage of quarterly forecast amount, has been developed. Help Jody develop an Master Production Schedule for quarter 1 (1.e., figure out how much they will need to produce in which weeks (1-12) Master Production Schedule as % of Sales Forecast 1 0% 12 2 5% 3 15% 4 5% Weeks in Quarter 6 8 5% 10% 25% 5 10% 9 10% 10 10% 11 0% 5% Item NW Grunge Sampler Deep South Hooch Sampler 0% 0% 20% 0% 10% 0% 20% 25% 5% 15% 5% 0% Given the following bill of materials, master production schedule, and inventory master filc, generate MRP matrices for each item and identify orders that are past due. If any orders are past due give a recommendation on what course of action to take. If past due, lody can subcontract the samplers themselves but it costs 4 times the unit cost of each sampler (e.g., subcontract 1 unit NW Grunge - 4-56). Lower level items can be expedited if need be but the cost is twice as much as the unit cost of the item (e.g., expedite 1 unit Walla Walla Mud=2*$1). Item Master File Item On Hand Lead Time Lot Size Scheduled Receipts Unit Manufacturing /Purchasing Cost $6.00 9 2 1 0 15 1 1 $6.00 0 250 1 10 $1.00 0 0 301 2 75 $1.00 0 Northwest Grunge Sampler Deep South Hooch Sampler Walla Walla Mud Mt Hood Dredge Tacoma Terror Tuscaloosa Tornado Meridian Mothball Augusta Augsbarge Labels Boxes 350 1 40 $0.50 0 15 1 1 $0.50 0 250 2 20 $0.50 0 5 1 40 $0.50 0 257 611 NN 2 2 100 91 $0.01 $0.10 0 0 Finance has asked for a preliminary report on how much capital will be needed to purchase the units needed to complete these orders. Using the MRP matrices and the notes provided, calculate the capital costs per period and total for the quarter associated with the schedule you have constructed. There are no capital costs for finished samplers. Inventory holding costs are approximately the same for each lower level item and run about 50 50 per unit per period. There are no inventory costs for the final samplers themselves. Jody also needs to estimate the costs incurred from holding inventory over the quarter. Fill in the Yellow cells with the numbers you devise in the Exam to begin creating an Aggregate Produciton Plan (APP Copy rows 10 through 19 to create a new APP. 5853 04 Pod/ Care CH Til W In INC Needed Produced 0 0 WYN Whole WN 0 D 0 0 0 0 0 11 D 07 0 0 0 0 0 0 0 0 0 Total C BT 3 Marge A Center $. % 6% *821 Cel Insert Delete Conditional Format Formatting Table Format IF(0205,03CSO) 11 NEL WW ME GI . 10 13 3 . . . . . C 33700 VO SO DE DE CI LE 31 . 11 . TO El 10 DI C C To 9 . - CC | 000 3000 SO 30 sto DU 100 LLO tesKAL C. TER E F 0 13 10 19 5 D e . e 2 o D 10 CI Nam Pedre Capel TO 12 S. w 3000 NWOMA DGHMAP Times New Roman 16 - A A = Wrap Text General A E $% % Merge & Center w 489 Conditional Formu Call Formatting as Table Styles Dale 06 =IF(D3>=(5,03-C5,0) LOL PO 1 1 5 6 9 Lei1 10 11 > 4 0 10 O 0 10 D Sed receipt De had 0 0 O 0 0 0 0 0 0 0 ol 0 0 19 13 O 10 0 10 10 0 6 0 ol 10 0 0 0 0 0 0 10 O 0 U 10 Penedor de rees Capital Care Epe Cou 5000 g 59:00 50.00 o 5000 0005 9903 100 000 50.00 0005 50.00 50.00 50.00 tem 3 2 8 6 10 12 1 0 O 0 D 0 o dele 0 al 0 ol 0 0 10 TO 6 0 0 10 19 19 ol O 10 0 0 10 Nem Poder 10 10 0 ol 10 ol 0 01 SU DO 0 3000 0 ol 50,00 0 5000 $0.00 0001 so 30.00 5000 59.00 $0.00 50.00 Cepillow CH 50.00 50.00 To Total 000S 50.00 f South LCO LE Penal LE 3 6 10 13 alle regte Net 20 of 07 of OT 0 6 o of 0 0 0 0 10 0 O 9 0 Scott 005 LLC LE NO Pad T. 21 11 + 10 11 0 . 0 0 0 Hea 0 0 LT : 40 LG Schedulednice Poland Ne Paneele Tender Capital Com Expediting Cou 0 0 0 0 0 0 o 0 0 0 10 0 10 ol 10 0 0 0005 0 S000 0 0 SOLO ol 50.00 50.00 DEUS SO DO 30.00 $9.00 SO 2005 3000 LEO 500 llama Mer MD LLC LATE Pee 31 IND 4 3 . 11 To 11 U 0 0 U 0 9 speed olid 0 0 ol 0 0 0 0 0 10 . 0 0 10 ol 10 0 10 0 0 D 0 0 10 der meg ander Capital Costs spediting 0 D 0805 ol 0 1000 OT 0 500 0 or 50.00 50.00 $0.00 50.00 30.00 50.00 005 5000 OS Period LOTT 05 11 TE T 0 1 0 0 0 o en To La GOU Seteduled incepts Projected on hand HVGMAP 0 0 0 0 10 OSHOP INC Wrap Text Ganan Q@ 22 Mare Center $%% 3 Conforme cel Formigas table les 07 Expedia 50.00 LIGI PD 1 21 3 2 0 0 0 . 0 0 Hanne Han pal 3000 500 SO Tural Set 50.00 50.00 5000 Introduction and Background: The Beerstore packages specialty beers into gift packs and sells them via the Internet. Its most popular items are the Northwest Grunge Sampler and the Deep South Hooch Sampler. The product structure trees are given in Figure 1.1 Northwest Grunge Deep South Hooch Sampler Sampler Walla Walla Mud Mt. Hood Dredge Tacoma Terror Box Box Tuscaloosa Meridian Mothball Augusta Augsbar Tornado 1 Label Label Label Label Label Label Figure 1.1 Two of each beer is included in each of the samplers (i.c., cach sampler has six beers total). The Aggregate Production Plan The Beerstore splits the forecast they develop for their gift packs over the next 4 quarters. They estimate their demand for the year at 6000. The following table contains the fraction of demand by quarter. Apply the forecast to these percentages. Quarter Fraction of Demand 1/6 2 3 7/30 1/3 4/15 The cost of carrying inventory is calculated at $5.00 per unit per period. Jody has been told they cannot afford stockouts and there is no backordering. At the APP level no work can be subcontracted and overtime work by employees is not allowed. However, the company will allow extra inventory to carry over from quarter to quarter and year to year. The Beerstore has 5 workers on staff now and each worker can produce on average 100 samplers per quarter. The labor force is fairly liquid and workers can be readily hired or laid off. Hiring costs are SS00 per worker and layoff costs are $700 per worker. The workforce at the end of the 4 quarter will be retained. Her boss suggested they just follow the demand, a chase strategy, through the quarters to minimize un-needed inventory. However, the company HR department always complains about hiring and firing costs so they have suggested a pure level strategy. Jody believes that there is a better "hybrid" strategy she could develop that is lower cost than either of the other two plans. Jody needs to develop an aggregate production plana (APP) for the data & finds a plan that minimizes costs but complies with all company policies. Help Jody out. The Production Problem Jody wishes to use the forecast just developed to help make an Aggregate Production Plan that will then become a Master Production Schedule and drive a Materials Requirements Plan. Jody knows that weekly demand for the gift packs is split evenly between the two samplers (ie., 50% of demand is Grunge and 50% Deep South). In addition, the following weekly breakdown, in percentage of quarterly forecast amount, has been developed. Help Jody develop an Master Production Schedule for quarter 1 (1.e., figure out how much they will need to produce in which weeks (1-12) Master Production Schedule as % of Sales Forecast 1 0% 12 2 5% 3 15% 4 5% Weeks in Quarter 6 8 5% 10% 25% 5 10% 9 10% 10 10% 11 0% 5% Item NW Grunge Sampler Deep South Hooch Sampler 0% 0% 20% 0% 10% 0% 20% 25% 5% 15% 5% 0% Given the following bill of materials, master production schedule, and inventory master filc, generate MRP matrices for each item and identify orders that are past due. If any orders are past due give a recommendation on what course of action to take. If past due, lody can subcontract the samplers themselves but it costs 4 times the unit cost of each sampler (e.g., subcontract 1 unit NW Grunge - 4-56). Lower level items can be expedited if need be but the cost is twice as much as the unit cost of the item (e.g., expedite 1 unit Walla Walla Mud=2*$1). Item Master File Item On Hand Lead Time Lot Size Scheduled Receipts Unit Manufacturing /Purchasing Cost $6.00 9 2 1 0 15 1 1 $6.00 0 250 1 10 $1.00 0 0 301 2 75 $1.00 0 Northwest Grunge Sampler Deep South Hooch Sampler Walla Walla Mud Mt Hood Dredge Tacoma Terror Tuscaloosa Tornado Meridian Mothball Augusta Augsbarge Labels Boxes 350 1 40 $0.50 0 15 1 1 $0.50 0 250 2 20 $0.50 0 5 1 40 $0.50 0 257 611 NN 2 2 100 91 $0.01 $0.10 0 0 Finance has asked for a preliminary report on how much capital will be needed to purchase the units needed to complete these orders. Using the MRP matrices and the notes provided, calculate the capital costs per period and total for the quarter associated with the schedule you have constructed. There are no capital costs for finished samplers. Inventory holding costs are approximately the same for each lower level item and run about 50 50 per unit per period. There are no inventory costs for the final samplers themselves. Jody also needs to estimate the costs incurred from holding inventory over the quarter. Fill in the Yellow cells with the numbers you devise in the Exam to begin creating an Aggregate Produciton Plan (APP Copy rows 10 through 19 to create a new APP. 5853 04 Pod/ Care CH Til W In INC Needed Produced 0 0 WYN Whole WN 0 D 0 0 0 0 0 11 D 07 0 0 0 0 0 0 0 0 0 Total C BT 3 Marge A Center $. % 6% *821 Cel Insert Delete Conditional Format Formatting Table Format IF(0205,03CSO) 11 NEL WW ME GI . 10 13 3 . . . . . C 33700 VO SO DE DE CI LE 31 . 11 . TO El 10 DI C C To 9 . - CC | 000 3000 SO 30 sto DU 100 LLO tesKAL C. TER E F 0 13 10 19 5 D e . e 2 o D 10 CI Nam Pedre Capel TO 12 S. w 3000 NWOMA DGHMAP Times New Roman 16 - A A = Wrap Text General A E $% % Merge & Center w 489 Conditional Formu Call Formatting as Table Styles Dale 06 =IF(D3>=(5,03-C5,0) LOL PO 1 1 5 6 9 Lei1 10 11 > 4 0 10 O 0 10 D Sed receipt De had 0 0 O 0 0 0 0 0 0 0 ol 0 0 19 13 O 10 0 10 10 0 6 0 ol 10 0 0 0 0 0 0 10 O 0 U 10 Penedor de rees Capital Care Epe Cou 5000 g 59:00 50.00 o 5000 0005 9903 100 000 50.00 0005 50.00 50.00 50.00 tem 3 2 8 6 10 12 1 0 O 0 D 0 o dele 0 al 0 ol 0 0 10 TO 6 0 0 10 19 19 ol O 10 0 0 10 Nem Poder 10 10 0 ol 10 ol 0 01 SU DO 0 3000 0 ol 50,00 0 5000 $0.00 0001 so 30.00 5000 59.00 $0.00 50.00 Cepillow CH 50.00 50.00 To Total 000S 50.00 f South LCO LE Penal LE 3 6 10 13 alle regte Net 20 of 07 of OT 0 6 o of 0 0 0 0 10 0 O 9 0 Scott 005 LLC LE NO Pad T. 21 11 + 10 11 0 . 0 0 0 Hea 0 0 LT : 40 LG Schedulednice Poland Ne Paneele Tender Capital Com Expediting Cou 0 0 0 0 0 0 o 0 0 0 10 0 10 ol 10 0 0 0005 0 S000 0 0 SOLO ol 50.00 50.00 DEUS SO DO 30.00 $9.00 SO 2005 3000 LEO 500 llama Mer MD LLC LATE Pee 31 IND 4 3 . 11 To 11 U 0 0 U 0 9 speed olid 0 0 ol 0 0 0 0 0 10 . 0 0 10 ol 10 0 10 0 0 D 0 0 10 der meg ander Capital Costs spediting 0 D 0805 ol 0 1000 OT 0 500 0 or 50.00 50.00 $0.00 50.00 30.00 50.00 005 5000 OS Period LOTT 05 11 TE T 0 1 0 0 0 o en To La GOU Seteduled incepts Projected on hand HVGMAP 0 0 0 0 10 OSHOP INC Wrap Text Ganan Q@ 22 Mare Center $%% 3 Conforme cel Formigas table les 07 Expedia 50.00 LIGI PD 1 21 3 2 0 0 0 . 0 0 Hanne Han pal 3000 500 SO Tural Set 50.00 50.00 5000
