In fact, Space Age carries no finished-goods inventory. Recently, Space Age began using an MRP system that has helped reduce inventories greatly and improve on-time deliveries. Coral wonders what can be done to alleviate this problem. Skilled machinists with Ed's experience and employment record are extremely difficult to find. As Coral knows, Ed has been with the company a long time and is an excellent, reliable employee. However, due to the workload for producing part 3079, it has been necessary to schedule frequent overtime for him in order to finish the necessary parts on time.Ĭoral Snodgrass, operations manager for Space Age, has just heard from Ed's foremen that Ed is becoming unhappy about so much overtime. At present, Ed works a regular 40-hour week. However, the machinist must be present (even if not actually attending the machine) any time one of the machines, including the lathe, is in operation. Once set up and started, the lathe can run nearly unattended. At present the machine is run by Ed Szewczak, a machinist who also operates other machines in Space Age's shop. 3079) that requires machining on a special lathe used only for making that part.
Mrp for space age furniture company tv#
However, two of these productsthe Saturn microwave stand and the Gemini TV standhave a part (no. These products are made in various sizes and with various features, but all follow basically the same production and assembly operations.
Mrp for space age furniture company portable#
The Space Age Furniture Company manufactures tables and cabinets to hold microwave ovens and portable televisions. What is the trade-off between overtime costs and inventory costs? What are the costs of carrying excess items in inventory at each stage?Ĥ. How would reducing the minimum quantity of subassemblies help?ģ. What options are open to Coral to address this problem?Ģ. Recommend any changes that might be beneficial to the company and/or add value for the customer.ġ. Describe ways that management can keep track of job status and location during production. Compare and contrast the types of production processingjob shop, batch, repetitive, or continuousand determine which the primary mode of operation is and why.į. Calculate a new MRP that improves the base MRP.Į. Analyze the trade-off between overtime costs and inventory costs.ĭ. Suggest ways for improvements over sub-assemblies in lot sizes of 1,000.Ĭ. The lot size of 1,000 for sub-assemblies has produced a lumpy demand for part 3079. Develop an MRP for Space Age Furniture Company using the information in the case including the production of sub-assemblies in lot sizes of 1,000.ī.
Respond to the following and include any Materials Requirement Planning (MRP) calculations:Ī. Must be 10 to 12 double-spaced pages in length.
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