Question 3 (a) KANJAR Company is a manufacturer of light aircraft components in Oman. For the past two years of operation, the company is experiencing production backlog. A number of its customers are complaining for long delays of deliveries. This backlog is hurting the competitive advantage and the profitability of the company. In order to address this issue, the operation manager decides to implement the following possible alternatives, production overtime, subcontracting, and possible hiring of additional workers if necessary. The company always prepares a nine-month aggregate plan to decide the optimum way to determine requirements for planning purposes, although this is modified when the demand requirements change. The estimated demand for a particular unit for the period January through September is given in Table Q3(a). The current workforce is based on the production level in the previous December. Operating data are given in Table 03(b) Requirement: Develop an aggregate plan AP based on level capacity strategy specified for the planning period. Subcontract to meet a 100% service level every month and no overtime, no hiring, and no termination. Show graphically the demand forecast, actual production output, and ending inventory in single graph. Determine the total production cost for the specified period 17] (3) Table Q3(c) shows the demand orders of aircraft component of a local customer from January to September Develop a master planning schedule MPS, assuming production lot size of 800 units, and beginning inventory intended for the particular customer is 150 units. In your MPS indicate the projected available balance PAB and the MPS per month [3] Jan 1935 TableQ3(a): Veatch Company Estimated demand for a product Feb Mar May June 2.000 2.250 2.125 2.450 2.700 2.250 April August 1.900 Sep 1650 Table Q3(b): Veatch Company Operating data Items Amount Initial inventory (units) 400 Stockout costs (OMRU) 125 Carrying cost 30 JOMR un month Hiring cost per unit 70 (OMR unit Termination cost per unit 85 OMR Subcontract cost (OMR/unit 85 Production units the 1,500 previous December In-house production cost OMR 75 Labor hours/ unit 32 40 Workweek (hours) Weeks/month 4 Jan Feb Table Q3(c): Veatch Company Operating data Mar April May June 450 550 600 650 July August 750 Sep 800 400 450 700 (b) Salalah Electro-Mechanical Company manufactures a product POR345. The product POR345 consists of two PO890 assemblies, three QR432 assemblies and one PR678 assembly. The P0890 assembly consists of one P456, two 0921 and one 0239. The OR432 assembly consists of three P456, one R478 and two S590. Prepare a Bill of Material (BOM) product tree for the product POR 345. [2] Using Table 03(b)-1 and Table 03(b)-2 complete the Material Requirements Planning (MRP) calculations to determine when the Purchase Orders should be placed for item S590. Note: The product POR345 are being sold complete as well as the spare parts (e.g. items QR432, P0890, R478 etc) are being sold separately also. Question 3: (a) KANJAR Company is a manufacturer of light aircraft components in Oman. For the past two years of operation, the company is experiencing production backlog. A number of its customers are complaining for long delays of deliveries. This backlog is hurting the competitive advantage and the profitability of the company. In order to address this issue, the operation manager decides to implement the following possible alternatives: production overtime, subcontracting and possible hiring of additional workers if necessary. The company always prepares a nine-month aggregate plan to decide the optimum way to determine requirements for planning purposes, although this is modified when the demand requirements change. The estimated demand for a particular unit for the period January through September is given in Table Q3(a). The current workforce is based on the production level in the previous December. Operating data are given in Table Q3(b). Requirement: Develop an aggregate plan AP based on level capacity strategy specified for the planning period. Subcontract to meet a 100% service level every month and no overtime, no hiring, and no termination Show graphically the demand forecast, actual production output and ending inventory in single graph. Determine the total production cost for the specified period. 17] (6) Table Q3(c) shows the demand orders of aircraft component of a local customer from January to September Develop a master planning schedule MPS, assuming production lot size of 800 units, and beginning inventory intended for the particular customer is 150 units. In your MPS indicate the projected available balance PAB and the MPS per month [3] Jan 1935 TableQ3(a): Veatch Company Estimated demand for a product Feb Mar April 2,000 2250 2.125 2700 2.250 August 1.900 Sep 1650 Table Q3(b): Veatch Company Operating data Amount 400 125 30 70 85 Initial inventory (unts) Stockout costs (OMRun) Carrying cost. (OMR un monta Hiring cost perunt (OMR unit) Termination cost per un (OMR unit) Subcontract cost (OMR) Production units the previous December In-house production cost (OMR) Labor hours/ unit Workweek (hours) Weeksimonth 85 1.500 75 32 40 4 Jan Table 03(c): Veatch Company Operating data Mar April May 450 600 Feb 450 August Sep 800 400 550 700 (b) Salalah Electro-Mechanical Company manufactures a product POR345. The product POR345 consists of two PO890 assemblies, three QR432 assemblies and one PR678 assembly. The P0890 assembly consists of one P456, two 0921 and one Q239. The QR432 assembly consists of three P456, one R478 and to S590. 6) Prepare a Bill of Material (BOM) product tree for the product POR 345 [2] C) Using Table Q3(b)-1 and Table Q3(b)-2 complete the Material Requirements Planning (MRP) calculations to determine when the Purchase Orders should be placed for item $590. Note: The product POR 345 are being sold complete as well as the spare parts (e.g. items QR432. PO890, R478 etc) are being sold separately also. 14 Question 3 (a) KANJAR Company is a manufacturer of light aircraft components in Oman. For the past two years of operation, the company is experiencing production backlog. A number of its customers are complaining for long delays of deliveries. This backlog is hurting the competitive advantage and the profitability of the company. In order to address this issue, the operation manager decides to implement the following possible alternatives, production overtime, subcontracting, and possible hiring of additional workers if necessary. The company always prepares a nine-month aggregate plan to decide the optimum way to determine requirements for planning purposes, although this is modified when the demand requirements change. The estimated demand for a particular unit for the period January through September is given in Table Q3(a). The current workforce is based on the production level in the previous December. Operating data are given in Table 03(b) Requirement: Develop an aggregate plan AP based on level capacity strategy specified for the planning period. Subcontract to meet a 100% service level every month and no overtime, no hiring, and no termination. Show graphically the demand forecast, actual production output, and ending inventory in single graph. Determine the total production cost for the specified period 17] (3) Table Q3(c) shows the demand orders of aircraft component of a local customer from January to September Develop a master planning schedule MPS, assuming production lot size of 800 units, and beginning inventory intended for the particular customer is 150 units. In your MPS indicate the projected available balance PAB and the MPS per month [3] Jan 1935 TableQ3(a): Veatch Company Estimated demand for a product Feb Mar May June 2.000 2.250 2.125 2.450 2.700 2.250 April August 1.900 Sep 1650 Table Q3(b): Veatch Company Operating data Items Amount Initial inventory (units) 400 Stockout costs (OMRU) 125 Carrying cost 30 JOMR un month Hiring cost per unit 70 (OMR unit Termination cost per unit 85 OMR Subcontract cost (OMR/unit 85 Production units the 1,500 previous December In-house production cost OMR 75 Labor hours/ unit 32 40 Workweek (hours) Weeks/month 4 Jan Feb Table Q3(c): Veatch Company Operating data Mar April May June 450 550 600 650 July August 750 Sep 800 400 450 700 (b) Salalah Electro-Mechanical Company manufactures a product POR345. The product POR345 consists of two PO890 assemblies, three QR432 assemblies and one PR678 assembly. The P0890 assembly consists of one P456, two 0921 and one 0239. The OR432 assembly consists of three P456, one R478 and two S590. Prepare a Bill of Material (BOM) product tree for the product POR 345. [2] Using Table 03(b)-1 and Table 03(b)-2 complete the Material Requirements Planning (MRP) calculations to determine when the Purchase Orders should be placed for item S590. Note: The product POR345 are being sold complete as well as the spare parts (e.g. items QR432, P0890, R478 etc) are being sold separately also. Question 3: (a) KANJAR Company is a manufacturer of light aircraft components in Oman. For the past two years of operation, the company is experiencing production backlog. A number of its customers are complaining for long delays of deliveries. This backlog is hurting the competitive advantage and the profitability of the company. In order to address this issue, the operation manager decides to implement the following possible alternatives: production overtime, subcontracting and possible hiring of additional workers if necessary. The company always prepares a nine-month aggregate plan to decide the optimum way to determine requirements for planning purposes, although this is modified when the demand requirements change. The estimated demand for a particular unit for the period January through September is given in Table Q3(a). The current workforce is based on the production level in the previous December. Operating data are given in Table Q3(b). Requirement: Develop an aggregate plan AP based on level capacity strategy specified for the planning period. Subcontract to meet a 100% service level every month and no overtime, no hiring, and no termination Show graphically the demand forecast, actual production output and ending inventory in single graph. Determine the total production cost for the specified period. 17] (6) Table Q3(c) shows the demand orders of aircraft component of a local customer from January to September Develop a master planning schedule MPS, assuming production lot size of 800 units, and beginning inventory intended for the particular customer is 150 units. In your MPS indicate the projected available balance PAB and the MPS per month [3] Jan 1935 TableQ3(a): Veatch Company Estimated demand for a product Feb Mar April 2,000 2250 2.125 2700 2.250 August 1.900 Sep 1650 Table Q3(b): Veatch Company Operating data Amount 400 125 30 70 85 Initial inventory (unts) Stockout costs (OMRun) Carrying cost. (OMR un monta Hiring cost perunt (OMR unit) Termination cost per un (OMR unit) Subcontract cost (OMR) Production units the previous December In-house production cost (OMR) Labor hours/ unit Workweek (hours) Weeksimonth 85 1.500 75 32 40 4 Jan Table 03(c): Veatch Company Operating data Mar April May 450 600 Feb 450 August Sep 800 400 550 700 (b) Salalah Electro-Mechanical Company manufactures a product POR345. The product POR345 consists of two PO890 assemblies, three QR432 assemblies and one PR678 assembly. The P0890 assembly consists of one P456, two 0921 and one Q239. The QR432 assembly consists of three P456, one R478 and to S590. 6) Prepare a Bill of Material (BOM) product tree for the product POR 345 [2] C) Using Table Q3(b)-1 and Table Q3(b)-2 complete the Material Requirements Planning (MRP) calculations to determine when the Purchase Orders should be placed for item $590. Note: The product POR 345 are being sold complete as well as the spare parts (e.g. items QR432. PO890, R478 etc) are being sold separately also. 14