Mr. Hoi is the manager of a shop that assembles power tools. You have just received an order for 50 chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws is (given in the picture) Suppose now that capacity to produce part E is limited to a maximum of 100 units per period. Revise the planned-order releases for periods 1 through 4 so that the maximum is not exceeded in any period, keeping in mind an objective of minimizing carrying costs. The quantities need not be equal in every period. Note that the gross requirements for E will remain the same. However, quantities in some of the other rows will change. Determine the new cell values for those rows.
Mr. Hoi is the manager of a shop that assembles power tools. You have just received an order for 50 chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws is (given in the picture) Suppose now that capacity to produce part E is limited to a maximum of 100 units per period. Revise the planned-order releases for periods 1 through 4 so that the maximum is not exceeded in any period, keeping in mind an objective of minimizing carrying costs. The quantities need not be equal in every period. Note that the gross requirements for E will remain the same. However, quantities in some of the other rows will change. Determine the new cell values for those rows.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Mr. Hoi is the manager of a shop that assembles power tools. You have just received an order for 50 chain saws, which are to be shipped at the start of week 8. Pertinent information on the saws is (given in the picture)
Suppose now that capacity to produce part E is limited to a maximum of 100 units per period. Revise the planned-order releases for periods 1 through 4 so that the maximum is not exceeded in any period, keeping in mind an objective of minimizing carrying costs. The quantities need not be equal in every period. Note that the gross requirements for E will remain the same. However, quantities in some of the other rows will change. Determine the new cell values for those rows.
Transcribed Image Text:Item
Saw
A
B
C
D
E
F
A(2)
Prepare product structure tree:
Saw
E(3)
D D(2)
Prepare assembly time chart:
D
E
D
D
E
3
Lead Time
(weeks)
B
Gross requirements
Scheduled receipts
Projected on hand
Net requirements
Planned order receipts
Planned order releases
B
C
Start of week 2
Prepare master schedule:
Week 12345678
Quantity
Gross requirements
Scheduled receipts
Projected on hand
Net requirements
Planned order receipts
Planned order releases
2
1
2
2
1
1
2
Week
F(3) E(2)
15
10
5
Beginning
inventory
Beginning
inventory
65
50
10
Develop a material requirement planning for saw:
1
Beginning 1
inventory
10
1
65
C(4)
Gross requirements
Scheduled receipts
Projected on hand
Net requirements
Planned order receipts
Planned order releases
35
Develop a material requirement planning for Component A (2):
Saw
15
10
The
Start of week 8
2
On Hand
D(2)
10
65
2
15
10
5
65
20
10
30
Gross requirements
Scheduled receipts
Projected on hand
Net requirements
Planned order receipts
Planned order releases
Develop a material requirement planning for Component C (4):
10
15
3
10
3
65
3
15
3
10
4
140
10
4
4
65
75
15
5
4
150
10
140
140
180
10
60
5
65
Develop a material requirement planning for Component E (3) and E (3):
Beginning 1
inventory
Components
A(2), B(1), C(4)
E(3), D(1)
D(2), F(3)
E(2), D(2)
5
180
0
180
180
5
15
6
70
10
60
60
6
140
65
75
75
6
6
0
15
7
0
7
0
7
0
7
15
8
0
8
0
0
8
0
8
50
15
35
35
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