Ben Floyd really enjoyed wood shop in high school, so he used an inheritance to buy some basic woodworking tools. He started out doing odds jobs, and then one day he made a porch swing for his house. Several people saw it and asked him to make one for them word of mouth brought him many customers. In June of 2008 he married Bobbie Ruth, marketing graduate. Bobbie Ruth saw a chance to expand the swing business to similar products and eventually have hardware, building supply and furniture stores. Thus BF Swing was born. Due to his love of his work and Bobbie Ruth’s marketing ability, the business prospered. Today, they make stools, rockers as well as swings. The company now employees about 35 people five days a week. Due to growth, they have some trouble. To avoid this, they have decided to hire someone who knows production planning systems to help them. After interviewing, they chose you to fill this position. They give you following information and wants to develop following production planning problems. The following table gives the standard processing time (in minutes) for each operation of the tree products. In addition, it contains the expected time available in each department per week. Processing Time (minutes) Available (Hours) Department Stool Rocker Swing Drill 7 10 11 70 Lathe 15 0 0 35 Crosscut saw 3 16 10 105 Rip Saw 1 3 4 40 Mortise 0 10 8 70 Tenon 3 22 11 105 Router/Shaper 0 5 3 35 Plane 0 13 7 70 Sand 5 25 35 145 Assemble 12 30 45 200 Finish 5 15 22 80 Total 50 mins 157 mins 200 mins The forecasted demand for these products are as follows: Week Forecast Demand Week Forecast Demand Stool Rocker Swing Stool Rocker Swing 20 88 281 25 26 106 320 177 21 99 341 25 27 105 312 173 22 121 302 22 28 86 341 65 23 113 303 21 29 99 350 295 24 97 324 28 30 104 364 264 25 86 311 198 31 113 310 204 Ben Floyd and Bobbie Ruth wants you to develop two possible aggregate planning plans. The first plan uses a constant workforce without The second plan uses zero inventory According to the plans, which plan do you recommend them? To develop the two plans and calculate their associated costs, you need to know that the BF Swing time wage is $15 per hour, hiring costs are $500 per employee, and firing cost are $700 per employee. A stool costs $250 to make, a swing costs $380 and a rocker costs $150. The inventory cost carrying rate is 20 percent per year. Part 2: Ben Floyd and Bobbie Ruth now needs a master production schedule and a rough-cut capacity check to determine whether the capacity at each department is adequate to support the forecasted demand. Using the forecasted demand, first determine the master production schedule (MPS) then develop rough-cut capacity plan to check the available capacity of each departments, calculate the load for each department for each week of the planning horizon. Highlight any week(s) in which problems might occurs. Give a suggestion for the week(s) which problem occurs. Currently, there are 80 stools, 300 rockers, and 110 swing in inventory. Part 3: Ben Floyd and Bobbie Ruth review yours rough-cut capacity planning reports and developed master production schedule. Ben Floyd and Bobbie Ruth wants you to generate Material Requirements Planning (MRP) for product swing and stool. The new MPS values, Product tree and inventory records are given below. Generate the material requirements. Assume all items use lot-for-lot policy. Lead time is 2 week for all item except item Z and Y which have a lead time of 3 weeks. MPS for Stool and Swing Week 20 21 22 23 24 25 26 27 28 29 30 31 Stool 125 250 122 110 250 110 150 164 256 Swing 200 20 50 25 112 251 125 26 15 18 Inventory and Schedule receipts for item Component On hand Inventory Schedule Receipts J 100 - F 500 100 in week 21 R 250 250 in week 25 X 100 - Y 50 300 in week 30 Z 50 -
Part 1:
Ben Floyd really enjoyed wood shop in high school, so he used an inheritance to buy some basic woodworking tools. He started out doing odds jobs, and then one day he made a porch swing for his house. Several people saw it and asked him to make one for them word of mouth brought him many customers. In June of 2008 he married Bobbie Ruth, marketing graduate. Bobbie Ruth saw a chance to expand the swing business to similar products and eventually have hardware, building supply and furniture stores. Thus BF Swing was born. Due to his love of his work and Bobbie Ruth’s marketing ability, the business prospered. Today, they make stools, rockers as well as swings. The company now employees about 35 people five days a week.
Due to growth, they have some trouble. To avoid this, they have decided to hire someone who knows production planning systems to help them. After interviewing, they chose you to fill this position. They give you following information and wants to develop following production planning problems.
The following table gives the standard processing time (in minutes) for each operation of the tree products. In addition, it contains the expected time available in each department per week.
|
|
Processing Time (minutes) |
Available (Hours) |
||
|
Department |
Stool |
Rocker |
Swing |
|
|
Drill |
7 |
10 |
11 |
70 |
|
Lathe |
15 |
0 |
0 |
35 |
|
Crosscut saw |
3 |
16 |
10 |
105 |
|
Rip Saw |
1 |
3 |
4 |
40 |
|
Mortise |
0 |
10 |
8 |
70 |
|
Tenon |
3 |
22 |
11 |
105 |
|
Router/Shaper |
0 |
5 |
3 |
35 |
|
Plane |
0 |
13 |
7 |
70 |
|
Sand |
5 |
25 |
35 |
145 |
|
Assemble |
12 |
30 |
45 |
200 |
|
Finish |
5 |
15 |
22 |
80 |
|
Total |
50 mins |
157 mins |
200 mins |
|
The
|
Week |
Forecast Demand |
Week |
Forecast Demand |
||||
|
Stool |
Rocker |
Swing |
Stool |
Rocker |
Swing |
||
|
20 |
88 |
281 |
25 |
26 |
106 |
320 |
177 |
|
21 |
99 |
341 |
25 |
27 |
105 |
312 |
173 |
|
22 |
121 |
302 |
22 |
28 |
86 |
341 |
65 |
|
23 |
113 |
303 |
21 |
29 |
99 |
350 |
295 |
|
24 |
97 |
324 |
28 |
30 |
104 |
364 |
264 |
|
25 |
86 |
311 |
198 |
31 |
113 |
310 |
204 |
Ben Floyd and Bobbie Ruth wants you to develop two possible aggregate planning plans.
- The first plan uses a constant workforce without
- The second plan uses zero inventory
- According to the plans, which plan do you recommend them?
To develop the two plans and calculate their associated costs, you need to know that the BF Swing time wage is $15 per hour, hiring costs are $500 per employee, and firing cost are $700 per employee. A stool costs $250 to make, a swing costs $380 and a rocker costs $150. The inventory cost carrying rate is 20 percent per year.
Part 2:
Ben Floyd and Bobbie Ruth now needs a master production schedule and a rough-cut capacity check to determine whether the capacity at each department is adequate to support the forecasted demand. Using the forecasted demand, first determine the master production schedule (MPS) then develop rough-cut capacity plan to check the available capacity of each departments, calculate the load for each department for each week of the planning horizon. Highlight any week(s) in which problems might occurs. Give a suggestion for the week(s) which problem occurs. Currently, there are 80 stools, 300 rockers, and 110 swing in inventory.
Part 3:
Ben Floyd and Bobbie Ruth review yours rough-cut capacity planning reports and developed master production schedule. Ben Floyd and Bobbie Ruth wants you to generate Material Requirements Planning (MRP) for product swing and stool. The new MPS values, Product tree and inventory records are given below. Generate the material requirements. Assume all items use lot-for-lot policy. Lead time is 2 week for all item except item Z and Y which have a lead time of 3 weeks.
MPS for Stool and Swing
|
Week |
20 |
21 |
22 |
23 |
24 |
25 |
26 |
27 |
28 |
29 |
30 |
31 |
|
Stool |
125 |
|
250 |
122 |
110 |
|
250 |
|
110 |
150 |
164 |
256 |
|
Swing |
200 |
20 |
50 |
25 |
112 |
|
|
251 |
125 |
26 |
15 |
18 |
Inventory and Schedule receipts for item
|
Component |
On hand Inventory |
Schedule Receipts |
|
J |
100 |
- |
|
F |
500 |
100 in week 21 |
|
R |
250 |
250 in week 25 |
|
X |
100 |
- |
|
Y |
50 |
300 in week 30 |
|
Z |
50 |
- |
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