please answer #3, i will leave good feedback!

per year, ne com- mal, walk- 3. 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? 4. A business consultant suggested that Doug's Dens CASE STUDY Doug's Dens Marketing Cathy Franks ran the marketing at of Doug's Dens. When Doug Camets talk to her, she showed him the mic keting plan and forecast for the follow ing 12 months. The plans show the master schedule for the two items for the coming 12 months and are shown in Table 7.25. Cathy told Doug, "We generally are pretty accurate on yeatly sales for each of these products, but there is more inaccuracy regarding when these sales occur. To level deman out, we will occasionally run special and discount Charlie's Castle to spur more sales." Production The production department was super A custom-built doghouse vised by Doug's best friend, Kevin Jonn. who had studied entomology in college All products were custom assembled for D: oug Johnson is a 25-year-old entrepreneur who a particular customer order, typically is started his own business while in college. He re. batches of one. There was a high degree of comme sponded to an ad in the college newspaper seeking a ality in parts because roofs were made from one of student who was willing to build a doghouse for a five types of shingle, siding consisted of one of the family's Brittany spaniel. The job went well-he de- types, and floors were one of four types. Dens were signed and built a doghouse that any dog would love. assembled from three main subassemblies: floce and More importantly, the pet's owners were very im- foundation, frame, and root. When a customer order pressed and referred Doug to several of their friends. was received, a production order was generated for Soon, Doug had more orders than he could keep up each of the three subassemblies. Once each of the with, so he hired a friend of his. Within a year of three subassemblies was finished, assembly of the graduating from college, Doug was running a business final product was started. This system had worked with annual revenues of $800,000 and two employ. well for the first two years of the business but had ees. At present, the business has annual revenues of seemed to be less effective in the past six months $3.2 million and has built dens not only for dogs, but also for cats, snakes, lizards, gerbils, rabbits, and even Purchasing one llama! Denise Mina was in charge of the purchasing deput Recently, Doug has been noticing more and more problems with inventory shortages and late delivery ment. Because of the fast growth of Doug's Dens and times. The promised lead time for a final product is its relatively small size, most of the purchasing was usually 3 weeks, but in the past year lead times have done from the closest Home Depot store. Denke would check the inventory of every item used and skyrocketed to an average of 8 weeks. Doug decided it was time to investigate, so he chose two of his more Depot would then deliver the order on Friday. When compile an order to be placed on Thursday. Home popular designs, the entry-level Fido's Favorite and the more upscale Charlie's Castle. He met with his there was a shortage of a critical item, Denise often various employees to discuss potential causes of in- found herself driving to the Home Depot, buying the ventory problems with these two products, necessary item, and carrying it back to work in the back of her pickup truck. Because Doug's did $1.5 TABLE 7.26 Current Ordering Policy for Doug's Dens Part/Subassembly Order Quantity/Reorder Point Corner brackets Q = 1,000; R = 500 6-foot 2 x 4 Q = 4,000; R = 1,000 2-inch nails Q = 10,000; R = 1,000 Fido's Favorite BASIC floor sub-assembly Frame sub-assembly BASIC roof sub-assembly 8 corner brackets 24 2-inch nails 12 6-foot 2x4's Charlie's Castle DELUXE floor sub-assembly Frame sub-assembly DELUXE roof sub-assembly 8 corner brackets 24 2-inch nails 12 6-foot 2x4's FIGURE 7.18 Partial BOM for Fido's Favorite and Charlie's Castle TABLE 7.25 Master Schedule Month Week Fido's Favorite Charlie's Castle 1 1 4 3 2 5 3 3 3 2 2 5 4 3 5 2 5 4 4 6 6 2 7 3 N 8 3 3 3 15 12 3 3 10 8 4 8 10 5 10 20 6 9 15 7 9 12 8 8 10 9 8 12 10 10 10 11 11 10 12 per year, ne com- mal, walk- 3. 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? 4. A business consultant suggested that Doug's Dens CASE STUDY Doug's Dens Marketing Cathy Franks ran the marketing at of Doug's Dens. When Doug Camets talk to her, she showed him the mic keting plan and forecast for the follow ing 12 months. The plans show the master schedule for the two items for the coming 12 months and are shown in Table 7.25. Cathy told Doug, "We generally are pretty accurate on yeatly sales for each of these products, but there is more inaccuracy regarding when these sales occur. To level deman out, we will occasionally run special and discount Charlie's Castle to spur more sales." Production The production department was super A custom-built doghouse vised by Doug's best friend, Kevin Jonn. who had studied entomology in college All products were custom assembled for D: oug Johnson is a 25-year-old entrepreneur who a particular customer order, typically is started his own business while in college. He re. batches of one. There was a high degree of comme sponded to an ad in the college newspaper seeking a ality in parts because roofs were made from one of student who was willing to build a doghouse for a five types of shingle, siding consisted of one of the family's Brittany spaniel. The job went well-he de- types, and floors were one of four types. Dens were signed and built a doghouse that any dog would love. assembled from three main subassemblies: floce and More importantly, the pet's owners were very im- foundation, frame, and root. When a customer order pressed and referred Doug to several of their friends. was received, a production order was generated for Soon, Doug had more orders than he could keep up each of the three subassemblies. Once each of the with, so he hired a friend of his. Within a year of three subassemblies was finished, assembly of the graduating from college, Doug was running a business final product was started. This system had worked with annual revenues of $800,000 and two employ. well for the first two years of the business but had ees. At present, the business has annual revenues of seemed to be less effective in the past six months $3.2 million and has built dens not only for dogs, but also for cats, snakes, lizards, gerbils, rabbits, and even Purchasing one llama! Denise Mina was in charge of the purchasing deput Recently, Doug has been noticing more and more problems with inventory shortages and late delivery ment. Because of the fast growth of Doug's Dens and times. The promised lead time for a final product is its relatively small size, most of the purchasing was usually 3 weeks, but in the past year lead times have done from the closest Home Depot store. Denke would check the inventory of every item used and skyrocketed to an average of 8 weeks. Doug decided it was time to investigate, so he chose two of his more Depot would then deliver the order on Friday. When compile an order to be placed on Thursday. Home popular designs, the entry-level Fido's Favorite and the more upscale Charlie's Castle. He met with his there was a shortage of a critical item, Denise often various employees to discuss potential causes of in- found herself driving to the Home Depot, buying the ventory problems with these two products, necessary item, and carrying it back to work in the back of her pickup truck. Because Doug's did $1.5 TABLE 7.26 Current Ordering Policy for Doug's Dens Part/Subassembly Order Quantity/Reorder Point Corner brackets Q = 1,000; R = 500 6-foot 2 x 4 Q = 4,000; R = 1,000 2-inch nails Q = 10,000; R = 1,000 Fido's Favorite BASIC floor sub-assembly Frame sub-assembly BASIC roof sub-assembly 8 corner brackets 24 2-inch nails 12 6-foot 2x4's Charlie's Castle DELUXE floor sub-assembly Frame sub-assembly DELUXE roof sub-assembly 8 corner brackets 24 2-inch nails 12 6-foot 2x4's FIGURE 7.18 Partial BOM for Fido's Favorite and Charlie's Castle TABLE 7.25 Master Schedule Month Week Fido's Favorite Charlie's Castle 1 1 4 3 2 5 3 3 3 2 2 5 4 3 5 2 5 4 4 6 6 2 7 3 N 8 3 3 3 15 12 3 3 10 8 4 8 10 5 10 20 6 9 15 7 9 12 8 8 10 9 8 12 10 10 10 11 11 10 12