gc MGMNT 655o101

Complete the "Analytics Exercise: An MRP Explosion - Brunswick Motors," at the end of Chapter 21 in the textbook. Answer Questions 1-3.

APA format is not required, but solid academic writing is expected.

You are not required to submit this assignment to Turnitin.

LO21–3 Analyze an MRP problem.SummaryUnderstanding how the MRP system makes a detailed schedule is best done by studying examples. The logic is often re-ferred to as MRP explosion calculations, since the requirements shown in the MPS are “exploded” into detailed schedules for each item managed by the system. The basic logic is that the projected available balance in this period is calculated by taking the balance from the last period, subtracting the gross requirements from this period, and adding in scheduled and planned receipts.

Analytics Exercise: An MRP Explosion—Brunswick MotorsRecently, Phil Harris, the production control manager at Brunswick, read an article on time-phased requirements planning. He was curious about how this technique might work in scheduling Brunswick’s engine assembly opera-tions and decided to prepare an example to illustrate the use of time-phased requirements planning.

Phil’s fi rst step was to prepare a master schedule for oneof the engine types produced by Brunswick: the Model 1000 engine. This schedule indicates the number of units of the Model 1000 engine to be assembled each week during the last 12 weeks and is shown below. Next, Phil decided to simplify his requirements planning example by considering only two of the many components that are needed to com-plete the assembly of the Model 1000 engine. These two components, the gear box and the input shaft, are shown in the product structure diagram below. Phil noted that the gear box is assembled by the Subassembly Department and subsequently is sent to the main engine assembly line. The input shaft is one of several component parts manufactured by Brunswick that are needed to produce a gear box subas-sembly. Thus, levels 0, 1, and 2 are included in the prod-uct structure diagram to indicate the three manufacturing stages that are involved in producing an engine: the Engine Assembly Department, the Subassembly Department, and the Machine Shop.

The manufacturing lead times required to produce the gear box and input shaft components are also indicated in the prod-uct structure diagram. Note that two weeks are required to pro-duce a batch of gear boxes and that all the gear boxes must be delivered to the assembly line parts stockroom before Monday 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 shafts that are needed for the production of gear boxes in a given week must be delivered to the Sub assembly Department stockroom before Monday morning of that week.

In preparing the MRP example Phil planned to use the worksheets shown on the next page and to make the fol-lowing assumptions

:1. Seventeen gear boxes are on hand at the beginning of Week 1, and fi ve gear boxes are currently on order tobe delivered at the start of Week 2

.2. Forty input shafts are on hand at the start of Week 1, and 22 are scheduled for delivery at the beginning of Week 2

.Questions

1 Initially, assume that Phil wants to minimize his in-ventory requirements. Assume that each order will be only for what is required for a single period. Using the following forms, calculate the net requirements and planned order releases for the gear boxes and input shafts. Assume that lot sizing is done using lot-for-lot (L4L)

.2 Phil would like to consider the costs that his accoun-tants are currently using for inventory carrying and setup for the gear boxes and input shafts. These costs are as follows:

Part Cost

Gear BoxSetup 5 $90/order

Inventory carrying cost 5 $2/unit/week

Input Shaft Setup 5 $45/order

Inventory carrying cost 5 $1/unit/week