Assignment:
Swank Enterprises, Inc.
Swank Enterprises, a family owned small business in southern Indiana, manufactures two products sold under the brand names "Widget" and "Gadget". Product structure trees are shown on a following page. Item C, a component for Widgets and Gadgets, is also sold directly to consumers as a spare part for units already in service. The Master Production Schedule for Widgets and Gadgets for upcoming Weeks 4 through 8 is shown below. The spare part demand for C is expected to be 20,000 units per week for Weeks 1 through 8. Except as specifically noted lead times for all items is one week and items are ordered lot-for-lot. Currently you are conducting MRP planning in Week 0 and looking ahead to the upcoming 8 weeks.
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Master Production Schedule
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Week
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4
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5
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6
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7
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8
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Widget
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25,000
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32,000
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25,000
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30,000
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47,000
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Gadget
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7,000
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0
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13,000
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10,000
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25,000
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Relevant information on the production, ordering, and inventorying of all items is given below:
Widgets: At the beginning of Week 1 there will be 3,000 finished units in inventory. The batch size for producing Widgets is 30,000 units. There are no Scheduled Receipts.
Gadgets: At the beginning of Week 1 there will be 1,500 finished units in inventory. The batch size for producing Gadgets is 30,000 units. There are no Scheduled Receipts.
Item D: This subassembly is manufactured in-house at Swank with a batch size of 100,000 units. There is no weekly maximum on production, and no scheduled receipts. Beginning inventory in Week 1 should be 35,000 units.
Item C: This subassembly and spare part is usually manufactured in-house at Swank with a batch size of 200,000 units. One scheduled receipt of 250,000 units is expected from an outsource supplier in Week 5. Beginning Inventory in Week 1 should be 80,000 units.
Item B: This item is purchased from outside suppliers who will ship only in multiples of 500,000 units. Beginning inventory in Week 1 should be 1,000,000 units. A special purchase mandated by the contract of supply, 500,000 units delivered at a special price, will arrive in Week 5.
Item E: This item, also purchased from an outside supplier, can be ordered only in multiples of 200,000 units. Beginning inventory in Week 1 should be 250,000 units. A special purchase of 1,000,000 units will be delivered in Week 3.
Item F: This item is different in character from all the others used by Swank. Item F is a liquid glue used in assembling Item C. Only 0.4 (zero point four) fluid ounce of F is used to make each unit of C. The glue is widely available from many suppliers who must offer rapid delivery on orders to be competitive. Consequently, lead time on the item is effectively zero. The item is sold in pallets of twenty-four ten-gallon containers. As many (or as few) pallets as needed can be ordered at one time but the pallets cannot be broken, i.e., individual containers can't be ordered. At the beginning of Week 1 115 ten-gallon containers will be in inventory.
Attachment:- Master Production Schedule.rar