Lawn King produces a couple models of push lawn mowers. A total of 60 workers are currently employed to work on the assembly line. Hiring cost is $800 for each new employee, while the cost of laying off an employee is $1200. The production strategy in current use is a one-shift-per-day level strategy at average demand. Differences between demand and production are balanced by inventory and backorders. If a backorder occurs, the order is filled from the next available production run and safety stock is consumed if needed and replenished later. Lawn King utilizes a $7/unit carrying cost per month for inventory, and backorders have a cost of $10/unit per month. Production is estimated at 5 mowers per worker per shift, and the assembly line operates 20 working days (shifts) per month. Lawn King keeps 500 mowers as safety stock, which will be the beginning inventory for September. The regular time cost of production is $50 per lawn mower. [Hint: production = (# of workers)( # of mowers each worker produces per shift)(# of shifts per month)] Each May an aggregate production plan is prepared for the upcoming fiscal year that starts in September. The aggregate plan is used for personnel planning, inventory planning, and budget preparation. Develop an aggregate plan for fiscal 2022 using the forecasts below using their level strategy using a chase strategy by varying the number of workers Sept 2021 6000 Oct 7000 Nov 7000 Dec 8000 Jan 2022 8000 Feb 8000 Mar 7000 Apr 6000 May 7000 Jun 7000 Jul 7000 Aug 6000 Calculate the economic order quantitiy. Because of the high setup cost of $60/order for producing push lawnmowers, production is ordered in specified quantities instead of lot-for-lot. Calculate the economic order quantity for push mowers (assume independent of model; holding cost are given above). This quantity will be used as the lot size for the MRP. MORE à Prepare an MRP. Mowmaster is Lawn King’s most popular model. Like all push mowers, it is made of a motor assembly (purchased from a vendor), handle assembly, and body assembly. The handle assembly is made of a handle and shifter. The body assembly consists of a blade, frame, and 4 wheels. Complete the product structure tree for the Mowmaster. Complete a net MRP for wheels if 2000 Mowmasters need to be shipped in week 8. Reminder to use Q from part 2 as the lot size for the mower. Item Lead Time Inventory Lot size Mowmaster 1 100 Q= Motor assembly 2 10 Lot for lot Handle assembly 1 10 Lot for lot Body assembly 2 300 Lot for lot Handle 1 0 Lot for lot Shifter 2 0 Lot for lot Blade 1 0 Lot for lot Frame 1 0 Lot for lot Wheels 2 1550 200 Item 1 2 3 4 5 6 7 8 9 10 Mowmaster Gross Require On Hand Level = Net Require LT = Order Receipt Order Release Body Gross Require assembly On Hand Level = Net Require LT = Order Receipt Order Release Wheels Gross Require On Hand Level = Net Require LT = Order Receipt Order Release
Lawn King produces a couple models of push lawn mowers. A total of 60 workers are currently employed to work on the assembly line. Hiring cost is $800 for each new employee, while the cost of laying off an employee is $1200. The production strategy in current use is a one-shift-per-day level strategy at average demand. Differences between demand and production are balanced by inventory and backorders. If a backorder occurs, the order is filled from the next available production run and safety stock is consumed if needed and replenished later. Lawn King utilizes a $7/unit carrying cost per month for inventory, and backorders have a cost of $10/unit per month. Production is estimated at 5 mowers per worker per shift, and the assembly line operates 20 working days (shifts) per month. Lawn King keeps 500 mowers as safety stock, which will be the beginning inventory for September. The regular time cost of production is $50 per lawn mower.
[Hint: production = (# of workers)( # of mowers each worker produces per shift)(# of shifts per month)]
Each May an aggregate production plan is prepared for the upcoming fiscal year that starts in September. The aggregate plan is used for personnel planning, inventory planning, and budget preparation.
- Develop an aggregate plan for fiscal 2022 using the
forecasts below - using their level strategy
- using a chase strategy by varying the number of workers
|
Sept 2021 |
6000 |
|
Oct |
7000 |
|
Nov |
7000 |
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Dec |
8000 |
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Jan 2022 |
8000 |
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Feb |
8000 |
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Mar |
7000 |
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Apr |
6000 |
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May |
7000 |
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Jun |
7000 |
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Jul |
7000 |
|
Aug |
6000 |
- Calculate the economic order quantitiy. Because of the high setup cost of $60/order for producing push lawnmowers, production is ordered in specified quantities instead of lot-for-lot. Calculate the economic order quantity for push mowers (assume independent of model; holding cost are given above). This quantity will be used as the lot size for the MRP.
MORE à
- Prepare an MRP.
Mowmaster is Lawn King’s most popular model. Like all push mowers, it is made of a motor assembly (purchased from a vendor), handle assembly, and body assembly. The handle assembly is made of a handle and shifter. The body assembly consists of a blade, frame, and 4 wheels.
- Complete the product structure tree for the Mowmaster.
- Complete a net MRP for wheels if 2000 Mowmasters need to be shipped in week 8. Reminder to use Q from part 2 as the lot size for the mower.
|
Item |
Lead Time |
Inventory |
Lot size |
|
Mowmaster |
1 |
100 |
Q= |
|
Motor assembly |
2 |
10 |
Lot for lot |
|
Handle assembly |
1 |
10 |
Lot for lot |
|
Body assembly |
2 |
300 |
Lot for lot |
|
Handle |
1 |
0 |
Lot for lot |
|
Shifter |
2 |
0 |
Lot for lot |
|
Blade |
1 |
0 |
Lot for lot |
|
Frame |
1 |
0 |
Lot for lot |
|
Wheels |
2 |
1550 |
200 |
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Item |
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1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
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Mowmaster |
Gross Require |
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On Hand |
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Level = |
Net Require |
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LT = |
Order Receipt |
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Order Release |
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Body |
Gross Require |
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assembly |
On Hand |
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Level = |
Net Require |
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LT = |
Order Receipt |
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Order Release |
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Wheels |
Gross Require |
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On Hand |
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Level = |
Net Require |
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LT = |
Order Receipt |
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Order Release |
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