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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.

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
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. 

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
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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