Thidwick Assembly, LLC
(Apologies to Dr. Seuss)
Thidwick Assembly manufactures three different products
which are sold under the brand names of “Nizzard”, “Sneetch”,
and “Wocket”. The current Master Production Schedule for
each of the products in Weeks 3 through 12 is given below, and
product structure trees are shown on subsequent pages. Item C,
a component used in each of the products, is prone to failure in
units in the field and thus has a spare part demand. The spare
part demand is currently forecasted to be 200,000 units per week in Weeks 1 through 12. Except
as specifically noted the lead time for all items is one week. Currently you are conducting MRP
planning in Week 0 and looking ahead to the upcoming 12 weeks. Nizzar
d
Sneetc
h
Wocket 3
1200
0
1500
0
2100
0 4
1000
0
1700
0
2400
0 Master Production Schedule
5
6
7
8
9
8000 1100 1150 1300 1200
0
0
0
0
1800 2000 2150 2300 2400
0
0
0
0
0
2650 2750 2900 3050 3200
0
0
0
0
0 10
9000
2500
0
3500
0 11
1000
0
2700
0
3000
0 12
1050
0
2600
0
0 Relevant information on the production, ordering, and inventorying of all items is given below:
Nizzard At the beginning of Week 1 28,000 Nizzards will be in finished goods inventory
with 2000 being set aside as safety stock. Nizzards are made in batches of 1,000. Sneetch At the beginning of Week 1 35,000 Sneetches will be in finished goods inventory
with 2000 being set aside as safety stock. Sneetches are made in batches of 1,000. Wocket At the beginning of Week 1 21,000 Wockets will be in finished goods inventory
with 2000 being set aside as safety stock. Wockets are made in batches of 1,000. Item A At the beginning of Week 1 17,000 units of Item A will be in inventory with 3000
being set aside as safety stock. Item A is made in batches of 5,000. There will be
one Scheduled Receipt of Item A of 12,000 units in Week 1. Item B At the beginning of Week 1 1,000,000 units of Item B will be in inventory with no
units being held in safety stock. Item B is made in batches of 100,000. There will
be two Scheduled Receipts of 900,000 units in Weeks 1 and 2. Item C At the beginning of Week 1 300,000 units of Item C will be in inventory with
20,000 being set aside as safety stock. Item C is made in batches of 100,000. Item D At the beginning of Week 1 1.5 million units of Item D will be in inventory with
with no units being held in safety stock. Item D is made in relatively small batch
sizes of 10,000. Item E At the beginning of Week 1 1 million units of Item E will be in inventory with
100,000 units held in safety stock. Item E is made in batches of 1,000,000 units. Item F This item is different in character from all the others used by Thidwick. Item F is a
liquid glue used in assembling Item B and G. Only 0.35 (zero point three five)
fluid ounce of F is used to make each unit of G, and 0.25 (zero point two five) fluid
ounce is used to make Item B. 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 five-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 1 100 five-gallon containers will be in inventory, but no safety
stock is kept on this item given the fast response of the vendor. Further, an overall
estimate of 5% of the glue ordered is lost in the production process and can’t be
used in building Widgets and Gadgets. Item G At the beginning of Week 1 9,000 units of Item G will be in inventory with 3,000
being held as safety stock. Item G is made in batches of 3,500 units. Nizzard C A D D B (2) F E (3) E (3) D (3) (.25 OZ) E E (3) G C D (2) E (3) C B F
(.25 OZ) (3) (2) E D E (3) D (2) E (3) (2) (3) B F
(.25 OZ) (3) E F
(.35 OZ) Wocket
Sneetch A G (2) C D E (3) D (2) E (3) (3) B (.25 OZ) F (3) E F (.35 OZ)

AccountingQueen

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Status NEW Posted 20 Aug 2017 08:08 AM My Price 10.00

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