Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

The Green Thumb Water Sprinkler Company was founded in 1948 by Arthur Green, an entrepreneur with an avid interest in home gardening. Today the successful

The Green Thumb Water Sprinkler Company was founded in 1948 by Arthur Green, an entrepreneur with an avid interest in home gardening. Today the successful company, known as Arthur Green, Inc., is run by Arthurs descendants. Among other things Arthur Green produces a line of high-quality sprinklers targeted at upper-income hobbyists. The companys products are considered very retro in design and are seen by customers as unique and harkening back to an earlier time. To reinforce this image company catalogs and websites feature photos of the late Arthur Green working in his garden and wearing a pith helmet, popular in the past with some gardeners. A stylized drawing of Arthurss pith helmet appears on the companys logo, and one of the real Arthurian headgear is lovingly displayed behind glass at the companys headquarters in Oconomowoc, Wisconsin.

One product made by Arthur Green is the Model #984 Basic Lawn Sprinkler, a mainstay of the companys product line and little-changed since first introduced in 1953.

image text in transcribed

The #984 Sprinkler is very basic in design and easy to assemble. A product structure tree is given later in this problem as well as basic information about each item in the tree. Capacity is limited in that a maximum of 250,000 sprinklers may be shipped in any given week. Note especially the items Raw Aluminum Tubing and Bulk Paint. The tubing in diameter and is purchased in 18-foot lengths. 2000 of these 18-foot tubes can be shipped on a single semi flatbed trailer. The lengths of tubing are then cut to form the Frame Tube and the Sprinkler Tube. The Bulk Paint is purchased in semi tanker loads of 8500 gallons each.

Considering the Master Production Schedule and other information given on the following page:

  1. Develop MRP reports for each of the ten items of interest in the #984 problem. For Raw Aluminum Tubing and Bulk Paint your report should show the number of truck/tanker loads to be ordered in each time bucket.

  1. For the planning scenario in part a above you also need an estimate of scrap aluminum tubing to be sold for recycling on a weekly basis. Determine on a week-by-week basis the revenue that can come from selling scrap aluminum assuming:

  • One foot of aluminum tubing weighs .17 pounds.
  • The market price for scrap aluminum of this type is $0.42 per pound.
  1. Mall-Mart Stores, In, a very good customer, has suddenly asked whether Arthur Green can ship an additional 150,000 #984 sprinklers in Week 4. This is on top of other orders reflected in the Master Production Schedule. Modify the Master Production Schedule such that Arthur Green can:

  • Meet the new quantity from Mall-Mart as quickly as possible.
  • Fulfill all other existing orders in the MPS.
  • Incur no more than a 10% change in MPS quantities week-to-week

Master Production Schedule

Week

4

5

6

7

8

9

10

11

12

Shipment

Quantity

125,000

100,000

145,000

175,000

200,000

220,000

220,000

230,000

250,000

Item

Ordering

Policy

Beginning

Inventory

Scheduled

Receipts

Sprinkler

Lot = 800

5,000

Water Motor Assembly

Any Batch Size

0

Hose Receptacle Assembly

Lot = 10,000

0

Frame Assembly

Any Batch Size

0

Sprinkler Tube

Any Batch Size

10,000

Metal Screw

Lot = 100,000

50,000

Water Motor

Lot = 50,000

50,000

Frame Tube

Lot for Lot

0

Plastic Cap

Lot = 10,000

50,000

10,000 in Week 2

End Plate

Lot = 1,000,000

350,000

Bulk Paint

Lot = 8500 gallons

3200 gallons

Raw Aluminum Tubing

Lot = 3500 sections

25,000 sections

10 Truckloads

in Week 1

Additional Information

The End Plate has a 2-week lead time. All other items have a lead time of 1 week.

The grade and gauge of aluminum tubing used here weighs .17 pounds per linear foot.

The current market price for scrap aluminum tubing is $0.42 per pound.

image text in transcribed

M-Water Motor Assembly #699 Hose Recept. Assembly Frame Assembly Lawn Sprinkler Water Motor Assembly Hose Recept. Assembly Frame Assembly Paint (3.8 fl. oz.) Sprinkler Tube (17.9 inches) Metal Screw (3 units) Water Motor (1 unit) Frame Tube (29.7 inches) Plastic Cap (3 units) Metal Screw (3 units) End Plate (1 unit) Bulk Paint Raw Aluminum Tubing Raw Aluminum Tubing

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions