Description
Refer to the Excel speadsheet, “Inventory Management,” to complete the “Analytics Exercise: An MRP Explosion – Brunswick Motors,” at the end of Chapter 21 in the textbook. Answer Questions 1-3.
MGT-655-InventoryManagement.xlxs
APA format is not required, but solid academic writing is expecte
Week
Quantity
1
2
3
4
Engine Assembly Master Sch
5
Gear box requirement
Week
Gross Requirements
Scheduled Receipts
Projected Available Balance
Net Requirements
Planned Order Receipt
Planned Order Release
1
0
17
2
0
5
17
3
0
4
0
5
0
0
0
0
3
4
0
Input shaft requiremen
5
0
47
47
From E12 for 2 Weeks Lead Time
Week
Gross Requirements
Scheduled Receipts
Projected Available Balance
Net Requirements
Planned Order Receipt
Planned Order Release
1
10
30
2
20
37
47
0
From F24 for 3 Weeks Lead Time
Part 2
Gear Box
Given Information
Setup per order=
Inventory Carrying Cost per unit per period
$90.00
$2.00
Input Shaft
Given Information
Setup per order=
Inventory Carrying Cost per unit per period
$45.00
$1.00
Number of orders ( count cells with values for planned o
Set-up Costs=# of Orders X Setup Costs
(8*90)
Inventory (2+2)*Inventory Carrying Cost
Total
Setup Costs=5 orders*45
Inventory=(30+32+32+2)*1
Total
Total Cost
Engine Assembly Master Schedule
6
7
8
9
10
11
12
Gear box requirements
6
7
0
0
8
0
9
0
10
0
11
0
0
0
0
0
12
0 Since Gear box 1 X Engine Assembly, use Ma
From Problem
0 Cell B10, Beg Balance of 17- Gross Requirem
Net Req=Gross Req-Projected Available Bala
Same as row above
8
0
9
0
10
0
11
0
0
0
0
0
0
Input shaft requirements
6
7
0
0
0
0
unt cells with values for planned order release)
ers X Setup Costs
ntory Carrying Cost
$0.00
$0.00
$0.00
12
Since Input Shaft is 2 X Gear Box, then each w
From Problem
0 Cell B22, Beg Balance of 40- Gross requireme
Net Req=Gross Req-Projected Available Bala
Same as row above
Planned Order Receipt from 3 weeks in futur
box 1 X Engine Assembly, use Master Engine Assembly Qty
Cell C10 Carryover
ross Req-Projected Available Balance from prior week
Shaft is 2 X Gear Box, then each week is 2 X Row 13
Week 5 and beyond 0 since no scheduled receipts
ross Req-Projected Available Balance from prior week
Week
Quantity
1
Lead Time
2
2
3
4
Engine Assembly Master Sch
5
Gear box requirement
Week
Gross Requirements
Scheduled Receipts
Projected Available Balance
Net Requirements
Planned Order Receipt
Planned Order Release
1
0
17
2
0
5
22
3
0
4
0
5
0
0
0
0
From E12 for 2 Weeks Lead Time
Week
Gross Requirements
Scheduled Receipts
Projected Available Balance
Net Requirements
Planned Order Receipt
Planned Order Release
1
30
10
2
3
4
0
Input shaft requiremen
5
0
22
32
32
0
0
From F24 for 3 Weeks Lead Time
Part 2
Gear Box
Given Information
Setup per order=
Inventory Carrying Cost per unit per period
$90.00
$2.00
Input Shaft
Given Information
Setup per order=
Inventory Carrying Cost per unit per period
$45.00
$1.00
Number of orders ( count cells with values for planned o
Set-up Costs=# of Orders X Setup Costs
3*90)
Inventory (88)*Inventory Carrying Cost
Total
Setup Costs=2 orders*45
Inventory=(74)*1
Total
Total Cost
Engine Assembly Master Schedule
6
7
8
9
10
11
12
Gear box requirements
6
7
0
0
8
0
9
0
10
0
11
0
0
0
0
0
12
0 Since Gear box 1 X Engine Assembly, use Ma
From Problem
0 Cell B10, Beg Balance of 17- Gross Requirem
Net Req=Gross Req-Projected Available Bala
Planned order receipt=projected available ba
Stagger Order Releases to reduce Costs
8
0
9
0
10
0
11
0
0
0
0
0
0
Input shaft requirements
6
7
0
0
0
0
12
Since Input Shaft is 2 X Gear Box, then each w
From Problem
0 Cell B22, Beg Balance of 40- Gross requireme
Net Req=Gross Req-Projected Available Bala
Planned Order Receipt from 3 weeks in futur
unt cells with values for planned order release)
ers X Setup Costs
tory Carrying Cost
sum of projected available balance
$0.00
$0.00
$0.00
box 1 X Engine Assembly, use Master Engine Assembly Qty
Next cell, Gross Req-Scheduled Receipts
ross Req-Projected Available Balance from prior week
der receipt=projected available balance +net requirements
Shaft is 2 X Gear Box, then each week is 2 X Row 13
Week 4 and beyond 0 since no scheduled receipts
ross Req-Projected Available Balance from prior week
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section 4
SUPPLY AND DEMAND PLANNING AND CONTROL
O
Analytics Exercise: An MRP Explosion-
Brunswick Motors
Recently, Phil Harris, the production control manager at shafts that are needed for the production of gear boxes in a
Brunswick, read an article on time-phased requirements given week must be delivered to the Subassembly Department
planning. He was curious about how this technique might stockroom before Monday morning of that week.
work in scheduling Brunswick’s engine assembly opera- In preparing the MRP example Phil planned to use the
tions and decided to prepare an example to illustrate the worksheets shown on the next page and to make the fol-
use of time-phased requirements planning.
lowing assumptions:
Phil’s first step was to prepare a master schedule for one 1. Seventeen gear boxes are on hand at the beginning of
of the engine types produced by Brunswick: the Model Week 1, and five gear boxes are currently on order to
1000 engine. This schedule indicates the number of units of be delivered at the start of Week 2
the Model 1000 engine to be assembled each week during 2. Forty input shafts are on hand at the start of Week I,
the last 12 weeks and is shown below. Next, Phil decided to and 22 are scheduled for delivery at the beginning of
simplify his requirements planning example by considering Week 2
only two of the many components that are needed to com-
plete the assembly of the Model 1000 engine. These two Questions
components, the gear box and the input shaft, are shown
Initially, assume that Phil wants to minimize his in-
in the product structure diagram below. Phil noted that the
gear box is assembled by the Subassembly Department and
ventory requirements. Assume that each order will be
only for what is required for a single period. Using the
subsequently is sent to the main engine assembly line. The
following forms, calculate the net requirements and
input shaft is one of several component parts manufactured
planned order releases for the gear boxes and input
by Brunswick that are needed to produce a gear box subas-
shafts. Assume that lot sizing is done using lot-for-lot
sembly. Thus, levels 0, 1, and 2 are included in the prod-
(L4L).
uct structure diagram to indicate the three manufacturing
2 Phil would like to consider the costs that his accoun-
stages that are involved in producing an engine: the Engine
tants are currently using for inventory carrying and
Assembly Department, the Subassembly Department, and
setup for the gear boxes and input shafts. These costs
the Machine Shop
are as follows:
The manufacturing lead times required to produce the gear
box and input shaft components are also indicated in the prod- PARY
Cose
uct structure diagram. Note that two weeks are required to pro- Gear Box Setup – $90/order
duce a batch of gear boxes and that all the gear boxes must be
Inventory carrying cost-$2/unit/week
delivered to the assembly line parts stockroom before Monday
Input Shaft Setup – $45/order
morning of the week in which they are to be used. Likewise,
it takes three weeks to produce a lot of input shafts, and all the
Inventory carrying cost-$1/unit/week
Model 1000 master schedule
Week
9 10 11
Demand 15
10
15
16
Model 1000 product structure
Tingine assembly
Crankcase
Gear hon
Lead time – 2 weeks
Used: 1 per engine
Inpul shaft
Lead time – 3 weeks
Used: 2 per gear box
с
1 MGT-655-RS-T3-L….xlsx
A
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X
Student Portal | Main
3 Student Assignment LCS Learnir X
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operations_and_supply chain_ma X
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Apps A CSDC AMANDA test
yan EMS admin rules
yan Bureau Contact #’s
yan BETS
6 BVL Calendar M Mail
Google Maps
O Google Hangout
Elite
a serma
lowa Board of Nursin
benefits enrollment
85
X
621 of 800
Q
MATERIAL. REQUIREMENTS PLANNING
chapter 21
585
O
Given the cost structure, evaluate the cost of the
schedule from question 1. Assume inventory is val-
ued at the end of each week.
3 Find a better schedule by reducing the number of
orders and carrying some inventory. What are the
savings with this new schedule?
Engine assembly master schedule
Week
1
Quantity
Gear box requirements
5 6 7 8 9
10
11 12
Week
Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order release
Input shaft
quirements
6 7 8 9 10 12
12
5
Week
Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order release
Practice Exam
1. Term used for a computer system that integrates ap- 8. These are orders that have already been released and
plication programs for the different functions in a firm. are to arrive in the future.
2. Logic used to calculate the needed parts, components, 9. This is the total amount required for a particular item.
and other materials needed to produce an end item. 10. This is the amount needed after considering what we
3. This drives the MRP calculations and is a detailed plan currently have in inventory and what we expect to ar-
for how we expect to meet demand.
rive in the future.
4. Period of time during which a customer has a specified II. The planned order receipt and planned order release
level of opportunity to make changes.
are offset by this amount of time.
5. This identifies the specific materials used to make each 12. These are the part quantities issued in the planned
item and the correct quantities of each.
order release section of an MRP report.
6. If an item is used in two places in a bill-of-materials, 13. Ordering exactly what is needed each period without
say level 3 and level 4, what low-level code would be regard to economic considerations.
assigned to the item?
14. None of the techniques for determining order quantity
7. One unit of Part C is used in item A and in item B. Cur- consider this important noneconomic factor that could
rently, we have 10 As, 20 Bs, and 100 Cs in inventory. make the order quantity infeasible.
We want to ship 60 As and 70 Bs. How many addi-
tional Cs do we need to purchase?
kadt Buapo 10-OJ-OTSI sa 10 ZI
w Poll Jawabau ON Suawnhou s 6 daw pompays 8.219 SJCW-Jo-11
OU WIL” (saw) apoyos uoganpowd alsEWS (XW) Suluued squamanbo SC Z (AED) Suluued cunosas asuda
‘S
с
Selected Bibliography
Jacobs, E. R., W. L. Berry, D. C. Whytark, and T. E. Vollmann. Manyarturing
Planning and Control Systems for Supply Chain Management. 6th ed. Burr
Ridee, IL: McGraw-Hill, 2011
Orlicky, LC Pink and C Smith. Materials Requirements Planning 3rd ed. New
York: Moiraw-Hill, 2011. (This is the classic book on MRP).
1 MGT-655-RS-T3-L….xlsx
A
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Show all
X
Purchase answer to see full
attachment
Quantity
1
2
3
4
Engine Assembly Master Sch
5
Gear box requirement
Week
Gross Requirements
Scheduled Receipts
Projected Available Balance
Net Requirements
Planned Order Receipt
Planned Order Release
1
0
17
2
0
5
17
3
0
4
0
5
0
0
0
0
3
4
0
Input shaft requiremen
5
0
47
47
From E12 for 2 Weeks Lead Time
Week
Gross Requirements
Scheduled Receipts
Projected Available Balance
Net Requirements
Planned Order Receipt
Planned Order Release
1
10
30
2
20
37
47
0
From F24 for 3 Weeks Lead Time
Part 2
Gear Box
Given Information
Setup per order=
Inventory Carrying Cost per unit per period
$90.00
$2.00
Input Shaft
Given Information
Setup per order=
Inventory Carrying Cost per unit per period
$45.00
$1.00
Number of orders ( count cells with values for planned o
Set-up Costs=# of Orders X Setup Costs
(8*90)
Inventory (2+2)*Inventory Carrying Cost
Total
Setup Costs=5 orders*45
Inventory=(30+32+32+2)*1
Total
Total Cost
Engine Assembly Master Schedule
6
7
8
9
10
11
12
Gear box requirements
6
7
0
0
8
0
9
0
10
0
11
0
0
0
0
0
12
0 Since Gear box 1 X Engine Assembly, use Ma
From Problem
0 Cell B10, Beg Balance of 17- Gross Requirem
Net Req=Gross Req-Projected Available Bala
Same as row above
8
0
9
0
10
0
11
0
0
0
0
0
0
Input shaft requirements
6
7
0
0
0
0
unt cells with values for planned order release)
ers X Setup Costs
ntory Carrying Cost
$0.00
$0.00
$0.00
12
Since Input Shaft is 2 X Gear Box, then each w
From Problem
0 Cell B22, Beg Balance of 40- Gross requireme
Net Req=Gross Req-Projected Available Bala
Same as row above
Planned Order Receipt from 3 weeks in futur
box 1 X Engine Assembly, use Master Engine Assembly Qty
Cell C10 Carryover
ross Req-Projected Available Balance from prior week
Shaft is 2 X Gear Box, then each week is 2 X Row 13
Week 5 and beyond 0 since no scheduled receipts
ross Req-Projected Available Balance from prior week
Week
Quantity
1
Lead Time
2
2
3
4
Engine Assembly Master Sch
5
Gear box requirement
Week
Gross Requirements
Scheduled Receipts
Projected Available Balance
Net Requirements
Planned Order Receipt
Planned Order Release
1
0
17
2
0
5
22
3
0
4
0
5
0
0
0
0
From E12 for 2 Weeks Lead Time
Week
Gross Requirements
Scheduled Receipts
Projected Available Balance
Net Requirements
Planned Order Receipt
Planned Order Release
1
30
10
2
3
4
0
Input shaft requiremen
5
0
22
32
32
0
0
From F24 for 3 Weeks Lead Time
Part 2
Gear Box
Given Information
Setup per order=
Inventory Carrying Cost per unit per period
$90.00
$2.00
Input Shaft
Given Information
Setup per order=
Inventory Carrying Cost per unit per period
$45.00
$1.00
Number of orders ( count cells with values for planned o
Set-up Costs=# of Orders X Setup Costs
3*90)
Inventory (88)*Inventory Carrying Cost
Total
Setup Costs=2 orders*45
Inventory=(74)*1
Total
Total Cost
Engine Assembly Master Schedule
6
7
8
9
10
11
12
Gear box requirements
6
7
0
0
8
0
9
0
10
0
11
0
0
0
0
0
12
0 Since Gear box 1 X Engine Assembly, use Ma
From Problem
0 Cell B10, Beg Balance of 17- Gross Requirem
Net Req=Gross Req-Projected Available Bala
Planned order receipt=projected available ba
Stagger Order Releases to reduce Costs
8
0
9
0
10
0
11
0
0
0
0
0
0
Input shaft requirements
6
7
0
0
0
0
12
Since Input Shaft is 2 X Gear Box, then each w
From Problem
0 Cell B22, Beg Balance of 40- Gross requireme
Net Req=Gross Req-Projected Available Bala
Planned Order Receipt from 3 weeks in futur
unt cells with values for planned order release)
ers X Setup Costs
tory Carrying Cost
sum of projected available balance
$0.00
$0.00
$0.00
box 1 X Engine Assembly, use Master Engine Assembly Qty
Next cell, Gross Req-Scheduled Receipts
ross Req-Projected Available Balance from prior week
der receipt=projected available balance +net requirements
Shaft is 2 X Gear Box, then each week is 2 X Row 13
Week 4 and beyond 0 since no scheduled receipts
ross Req-Projected Available Balance from prior week
Student Portal | Main
3 Student Assignment LCS Learnir X
Grand Canyon University – Digita X
6 operations_and_supply chain_ma X
S Ask a new question – Studypool X
+
х
https://viewer.gcu.edu/NHA4NK
*
:
Apps A CSDC AMANDA test
yan EMS admin rules
yan Bureau Contact #’s
yan BETS
6 BVL Calendar M Mail
Google Maps
Google Hangout
Elite
e serma
lowa Board of Nursin
benefits enrollment
85
%
X
620 of 800
Q
C
584
section 4
SUPPLY AND DEMAND PLANNING AND CONTROL
O
Analytics Exercise: An MRP Explosion-
Brunswick Motors
Recently, Phil Harris, the production control manager at shafts that are needed for the production of gear boxes in a
Brunswick, read an article on time-phased requirements given week must be delivered to the Subassembly Department
planning. He was curious about how this technique might stockroom before Monday morning of that week.
work in scheduling Brunswick’s engine assembly opera- In preparing the MRP example Phil planned to use the
tions and decided to prepare an example to illustrate the worksheets shown on the next page and to make the fol-
use of time-phased requirements planning.
lowing assumptions:
Phil’s first step was to prepare a master schedule for one 1. Seventeen gear boxes are on hand at the beginning of
of the engine types produced by Brunswick: the Model Week 1, and five gear boxes are currently on order to
1000 engine. This schedule indicates the number of units of be delivered at the start of Week 2
the Model 1000 engine to be assembled each week during 2. Forty input shafts are on hand at the start of Week I,
the last 12 weeks and is shown below. Next, Phil decided to and 22 are scheduled for delivery at the beginning of
simplify his requirements planning example by considering Week 2
only two of the many components that are needed to com-
plete the assembly of the Model 1000 engine. These two Questions
components, the gear box and the input shaft, are shown
Initially, assume that Phil wants to minimize his in-
in the product structure diagram below. Phil noted that the
gear box is assembled by the Subassembly Department and
ventory requirements. Assume that each order will be
only for what is required for a single period. Using the
subsequently is sent to the main engine assembly line. The
following forms, calculate the net requirements and
input shaft is one of several component parts manufactured
planned order releases for the gear boxes and input
by Brunswick that are needed to produce a gear box subas-
shafts. Assume that lot sizing is done using lot-for-lot
sembly. Thus, levels 0, 1, and 2 are included in the prod-
(L4L).
uct structure diagram to indicate the three manufacturing
2 Phil would like to consider the costs that his accoun-
stages that are involved in producing an engine: the Engine
tants are currently using for inventory carrying and
Assembly Department, the Subassembly Department, and
setup for the gear boxes and input shafts. These costs
the Machine Shop
are as follows:
The manufacturing lead times required to produce the gear
box and input shaft components are also indicated in the prod- PARY
Cose
uct structure diagram. Note that two weeks are required to pro- Gear Box Setup – $90/order
duce a batch of gear boxes and that all the gear boxes must be
Inventory carrying cost-$2/unit/week
delivered to the assembly line parts stockroom before Monday
Input Shaft Setup – $45/order
morning of the week in which they are to be used. Likewise,
it takes three weeks to produce a lot of input shafts, and all the
Inventory carrying cost-$1/unit/week
Model 1000 master schedule
Week
9 10 11
Demand 15
10
15
16
Model 1000 product structure
Tingine assembly
Crankcase
Gear hon
Lead time – 2 weeks
Used: 1 per engine
Inpul shaft
Lead time – 3 weeks
Used: 2 per gear box
с
1 MGT-655-RS-T3-L….xlsx
A
Show all
Show all
X
Student Portal | Main
3 Student Assignment LCS Learnir X
Grand Canyon University – Digita X
operations_and_supply chain_ma X
S Ask a new question – Studypool
x
+
х
https://viewer.gcu.edu/NHA4NK
*
:
Apps A CSDC AMANDA test
yan EMS admin rules
yan Bureau Contact #’s
yan BETS
6 BVL Calendar M Mail
Google Maps
O Google Hangout
Elite
a serma
lowa Board of Nursin
benefits enrollment
85
X
621 of 800
Q
MATERIAL. REQUIREMENTS PLANNING
chapter 21
585
O
Given the cost structure, evaluate the cost of the
schedule from question 1. Assume inventory is val-
ued at the end of each week.
3 Find a better schedule by reducing the number of
orders and carrying some inventory. What are the
savings with this new schedule?
Engine assembly master schedule
Week
1
Quantity
Gear box requirements
5 6 7 8 9
10
11 12
Week
Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order release
Input shaft
quirements
6 7 8 9 10 12
12
5
Week
Gross requirements
Scheduled receipts
Projected available balance
Net requirements
Planned order release
Practice Exam
1. Term used for a computer system that integrates ap- 8. These are orders that have already been released and
plication programs for the different functions in a firm. are to arrive in the future.
2. Logic used to calculate the needed parts, components, 9. This is the total amount required for a particular item.
and other materials needed to produce an end item. 10. This is the amount needed after considering what we
3. This drives the MRP calculations and is a detailed plan currently have in inventory and what we expect to ar-
for how we expect to meet demand.
rive in the future.
4. Period of time during which a customer has a specified II. The planned order receipt and planned order release
level of opportunity to make changes.
are offset by this amount of time.
5. This identifies the specific materials used to make each 12. These are the part quantities issued in the planned
item and the correct quantities of each.
order release section of an MRP report.
6. If an item is used in two places in a bill-of-materials, 13. Ordering exactly what is needed each period without
say level 3 and level 4, what low-level code would be regard to economic considerations.
assigned to the item?
14. None of the techniques for determining order quantity
7. One unit of Part C is used in item A and in item B. Cur- consider this important noneconomic factor that could
rently, we have 10 As, 20 Bs, and 100 Cs in inventory. make the order quantity infeasible.
We want to ship 60 As and 70 Bs. How many addi-
tional Cs do we need to purchase?
kadt Buapo 10-OJ-OTSI sa 10 ZI
w Poll Jawabau ON Suawnhou s 6 daw pompays 8.219 SJCW-Jo-11
OU WIL” (saw) apoyos uoganpowd alsEWS (XW) Suluued squamanbo SC Z (AED) Suluued cunosas asuda
‘S
с
Selected Bibliography
Jacobs, E. R., W. L. Berry, D. C. Whytark, and T. E. Vollmann. Manyarturing
Planning and Control Systems for Supply Chain Management. 6th ed. Burr
Ridee, IL: McGraw-Hill, 2011
Orlicky, LC Pink and C Smith. Materials Requirements Planning 3rd ed. New
York: Moiraw-Hill, 2011. (This is the classic book on MRP).
1 MGT-655-RS-T3-L….xlsx
A
Show all
Show all
X
Purchase answer to see full
attachment
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