the gear box requirements chart however the product structure shows that the

The gear box requirements chart however the product

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the gear box requirements chart, however, the product structure shows that the lead time for the input shaft is three weeks, rather than two weeks. Thus, after determining the net requirements, the planned order release number can be inputted three weeks prior to the dates of the net requirements. This information has been carried out below. Engine Assembly Master Schedule Weeks 1 2 3 4 5 6 7 8 9 10 11 12 Quantity 15 5 7 10 15 20 10 8 2 16 Gear Box Requirements Weeks 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 15 5 7 10 15 20 10 8 2 16 On Hand: 17 2 2 Scheduled Receipts 5 Net Requirements 5 10 15 20 10 8 2 16 Planned Order Release 5 10 15 20 10 8 2 16 Input Shaft Requirements Weeks 1 2 3 4 5 6 7 8 9 10 11 12 Gross requirements 10 20 30 40 20 16 4 32 On Hand: 40 30 32 32 2 Scheduled Receipts 22 Net Requirements 38 20 16 4 32 Planned Order Release 38 20 16 4 32 2. Phil would like to consider the costs that his accountants are currently using for inventory carrying and setup for the gear boxes and input shafts. For question number two, we are asked to consider the costs that are currently being used for inventory and setup. We are given the following information:
Part Cost Gear Box Setup= $90/ order Inventory Carrying= $2/unit/period Input Shaft Setup = $45/order Inventory Carrying = $1/unit/period Based on this information, we can say that the setup cost for the gear box is $720 and the inventory carrying cost is $8 giving us a total of $728 for the cost of setup and inventory for the gear box. With the input shaft, we can see that the setup cost comes out to $225 and the inventory carrying cost is $96, giving us a total of $321. The overall total for the engine production in terms of setup costs and inventory costs is $1,049. The calculations are shown below. Part Cost Gear Box Setup Cost: 8 x $90 = $720 Inventory Carrying: 4 x $2 = $8 Total: $728 Input Shaft Setup Cost: 5 x $45 = $225 Inventory Carrying: 96 x $1 = $96 Total: $321 Total= $1,049 3.

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