You are on page 1of 6

# Problem 11-19 Prepare a master production schedule for industrial pumps in the manner of the following table.

Use the MPS rule to "schedule production when the projected on-hand inventory would be less than 10 without production." Suppose that a production lot size of 70 pumps is used. (Leave no cells blank - be certain to enter "0" wherever required.) June Initial Inventory = 60 Forecast Custom er orders (committ ed) Projecte d onhand inventory MPS ATP 1 2 3 4 5 6 July 7 8

30 31

30 20

30 10

30 4

40 2

40

40

40

29

69

39

9W

39

69

29

59

70

0w

70 w

70

70

31 W

40

0w

68 w

70

70

Hint: Restate table and follow directions, MPS may produce earlier but not later in periods

Problem 11-3 Planners for a company that makes several models of skateboards are about to prepare the aggregate plan that will cover six periods. They have assembled the following information: Period Forecast 1 200 2 200 3 300 4 400 5 500 6 200 Total 1,800

## Costs Output Regular time Overtime Subcontract Inventory

= \$ 2 per skateboard = \$ 3 per skateboard = \$ 6 per skateboard per skateboard per period on average = \$1 inventory

Back orders

## = \$ 5 per skateboard per period

They have learned that one person is about to retire from the company. Rather than replace that person, they would like to stay with the smaller workforce and use overtime to make up for the lost output. The reduced regular-time output is 280 units per period. The maximum amount of overtime output per period is 40 units. are allowed per period. Subcontracting is \$6 per unit, and overtime is \$3 per unit. (Hint: Use Suppose you can use a combination of overtime and subcontracting, but you cannot use subcontracting in more than two periods. Up to 50 units of subcontracting and either 0 or 40 units of overtime subcontracting only when overtime units are not sufficient to decrease backlogs to 80 units or less.) Plan for an ending inventory balance of 0 for period 6. Prepare a plan that will minimize total cost. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "\$" sign in your response.) Tota Period Forecast Output Regular Overtim e Subcontr act OutputForecast Inventory Beginnin g Ending Average Backlog Costs: Output Regular Overtim e Subcontr act Inventory Backorder 1 200 2 200 3 300 4 400 5 500 6 200 l 1,800

Total

Hint:Redo table and use subcontracting when overtime is not sufficient, on the basis that subcontracting is more expensive than overtime.

Period Forecast Output Regular Subcontract OutputForecast Inventory Beginning Ending Average Backlog

1 200 280 0 80 0 80 40 0

## 3 300 280 20 0 160 160 160 0

4 400 280 50

5 500 280 50

6 200 280 0 80 0 0 0 0

490 80

560 0 120 0

## 560 \$3,360 0 720 0 490 0 400

Total \$600 680 840 985 1,305 560 \$4,970 Again, the reason why subcontracting is better before the busy month 5 is that carrying cost is cheaper than backorder cost.

Will you please write the answer on the box. Dont leave the answer blank just write 0 Problem 12-17 The MRP Department has a problem. Its computer died just as it spit out the following information:Planned order release for item J27 = 640 units in week 2. The firm has been able to reconstruct all the information they lost except the master schedule for end item 565. The firm is fortunate because J27 is used only in 565s. Given the following product structure tree and associated inventory status record information, determine what master schedule entry for 565 was exploded into the material requirements plan that killed the computer. (Leave no cells blank - be certain to enter "0" wherever required.) Part Number 565 X43 N78 Y36 J27 On Hand 0 60 0 200 0 Lot Size Lot-for-lot 120 Lot-for-lot Lot-for-lot Lot-for-lot Lead Time 1 week 1 week 2 weeks 1 week 2 weeks

Week Quantity

Beg. Inv.

Item: #565 LT = 1 wk. Gross requirements Scheduled receipts On hand Net requirements Planned order receipt Planned order release Item: Y36(2) LT = 1 wk. Gross requirements Scheduled receipts On hand Net requirements Planned order receipt Planned order release Item: J27(4) LT = 2 wks. Gross requirements Scheduled

Beg. Inv.

Beg. Inv.

Beg. Inv.

receipts On hand Net requirements Planned order receipt Planned order release
Master Schedule for #565 Week Quantity Beg. Inv. 1 2 3 4 5 6 180 7 8

Week Item: #565 LT = 1 wk. Gross requirements Scheduled receipts On hand Net requirements Planned order receipt Planned order release Week Item: Y36(2) LT = 1 wk. Gross requirements Scheduled receipts On hand Net requirements Planned order receipt Planned order release 160 0W 0W 0w 0W 0W 200 160 160 Beg. Inv. 1 2 3 4 5 360 6 7 8 180 180 180 Beg. Inv. 1 2 3 4 5 6 180 7 8

Week

Item: J27(4) LT = 2 wks. Gross requirements Scheduled receipts On hand Net requirements Planned order receipt Planned order release

Beg. Inv.

4 640