Question
Product X has the product structure given below. For I unit of X, 1 unit of A and 2 units of B are required. I
Product X has the product structure given below. For I unit of X, 1 unit of A and 2 units of B are required. I unit of A is composed of I unit of C and I unit of D. For 1 unit of B, 3 units of C are required. For 1 unit of C, 1 unit of E is required. C X A B (2) C (3) D E E Suppose that the batch size for the assembly of X is LX units. The assembly is done as multiples of this batch size. Currently, we have OX units of X on hand. The company does not keep safety stock for X. The planning horizon is 8 weeks ahead. Assume that there is no lead time for X. In addition, relevant details for each component are in the table below. A B Lot size policy On-hand inventory Lot-for-lot OA units EOQ-LB units OB units Component C EOQ-LC units OC units D At least LD units OD units E Lot-for-lot OE units Lead time 1 2 2 (in weeks) Safety stock None 50 100 None 70 100 (to be 500 (to be Scheduled received at the received at the None None None receipts beginning of beginning of Week2) Week3) Parameter Selected Value LX 52 LB 68 LC 725 LD 135 512 73 OA 75 3250 ac CD 112 184 OE a) (12 pts) Complete the master schedule for X. Week 1 2 3 4 5 6 7 Forecast 120 150 160 360 220 120 240 380 Customer orders 80 120 100 60 Net requirement Projected available balance MPS ATP E D B b) (75 pts) Complete the MRP records for each of the components. Week I 2 Gross Requirements Scheduled receipt Projected Available Balance Net Requirements Planned Order Receipts Planned Order Releases 3 5 Week 1 2 3 4 Gross Requirements Scheduled receipt Projected Available Balance Net Requirements Planned Order Receipts Planned Order Releases Gross Requirements Scheduled receipt Projected Available Balance Week 2 3 5 6 7 Net Requirements Planned Order Receipts Planned Order Releases Week 2 3 4 5 6 7 Gross Requirements Scheduled receipt Projected Available Balance Net Requirements Planned Order Receipts Planned Order Releases Week 2 3 5 6 Gross Requirements Scheduled receipt Projected Available Balance Net Requirements Planned Order Receipts Planned Order Releases c) (9 pts) The components go through the following work centers listed with the accompanying requirements. Suppose that the company works 60 min/hour; 6 days/week; 24 hours/day. Suppose that a setup is required once only at the beginning of every week for each work center. The setup takes 0.5 hour for work center1; 1 hour for work center2; 1.5 hour for workcenter3. Work centers, which are used for the components and unit processing time requirements, are given in the table below: Component A Work center Work centerl Processing time/unit I min B Work center2 5 min C Work center3 8 min D Work center2 6 min E Work centerl 2 min Determine the weekly capacity requirements (in minutes) in each of work centers, by filling in the workload table below. Workload Work center1 Week1 Week2 Week3 Week4 Week5 Week6 Week7 Week8 Work center2 Work center3 d) (4 pts) Based on the weekly available capacity of each work center, do the workloads computed in part c) cause any problem? If so, how can you rectify it? Discuss
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