Maximum production rate during regular time for all

Info icon This preview shows pages 64–70. Sign up to view the full content.

View Full Document Right Arrow Icon
maximum production rate during regular time for all items is 20,000 total units per week. The desired production utilization rate is 87.5% of regular time per week. The desired production utilization rate is 87.5% of regular time capacity. The desired average inventory level is 1500 units. capacity. The desired average inventory level is 1500 units. At the present time, there are customer orders for only item 9199. the expected At the present time, there are customer orders for only item 9199. the expected demand for this item over the next eight weeks is: demand for this item over the next eight weeks is: week week expected expected demand demand week week Expected Expected demand demand 1 9,000 9,000 5 15,000 15,000 2 25,000 25,000 6 21,000 21,000 3 19,000 19,000 7 14,000 14,000 4 18,000 18,000 8 17,500 17,500
Image of page 64

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
If there is no beginning inventory, a feasible master schedule for this If there is no beginning inventory, a feasible master schedule for this item would be: item would be: Period Period 1 2 3 4 5 6 7 8 Beginning Beginning Inventory Inventory Master schedule schedule 17500 17500 19000 19000 17500 17500 18000 18000 14000 14000 17500 Expected Expected demand demand 9000 25000 19000 19000 18000 15000 21000 21000 14000 14000 17500 Inventory Inventory ending ending 0 8500 1000 1000 500 3000 0 0 8500 1000 1000 500 3000 0 0 0
Image of page 65
Sum of ending inventories: (8,500+1,000+1,000+500+3,000+0+0+0) = Sum of ending inventories: (8,500+1,000+1,000+500+3,000+0+0+0) = 14,000 14,000 Average inventory Average inventory = = Sum of ending inventory Number of periods 14,000 8 = = 1750 (> 1500) Average Utilization = Total master schedule units . (reg. time capacity per period) (number of periods) = 17,500+17,500+…+….. . . +17,500 (20,000X8) = 86.25% (<87.5%)
Image of page 66

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
If there is no beginning inventory, a feasible master schedule for this If there is no beginning inventory, a feasible master schedule for this item would be: item would be: Period 1 2 3 4 5 6 7 8 Beginning Inventory Master Master schedule 16000 16000 20000 20000 19000 19000 18500 18500 15500 15500 20000 20000 14000 14000 19000 19000 Expected Expected demand 9000 9000 25000 25000 19000 19000 18000 18000 15000 15000 21000 21000 14000 14000 17500 17500 Inventory ending 0 7000 2000 0 500 1000 0 0 7000 2000 0 500 1000 0 0 1500
Image of page 67
Sum of ending inventories: (7,000+2,000+0+500+1,000+0+0+1,500)=12,000 Sum of ending inventories: (7,000+2,000+0+500+1,000+0+0+1,500)=12,000 Average inventory Average inventory = = Sum of ending inventory Number of periods = 12,000 8 1,500 = Average Utilization Total master schedule units . (reg. time capacity per period)(number of periods) = = (16,000+20,000+…+…+…+14,000+19,000) (20,000X8) = 87.58% (>87.50%)
Image of page 68

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Total Capacity = 8X20,000 = 160,000 Total Capacity = 8X20,000 = 160,000 Desired Utilization = 87.5% Desired Utilization = 87.5% Required MPS Quantity = (160,000X87.5%) Required MPS Quantity = (160,000X87.5%) = 140,000 = 140,000 Average= 140,000/8 = 17.5 per week Average= 140,000/8 = 17.5 per week
Image of page 69
Written Assignment- is due …..
Image of page 70
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern