MANF9472 PRODUCTION PLANNING AND CONTROL
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MANF9472 PRODUCTION PLANNING AND CONTROL
ASSIGNMENT
Note: This is a rolling assignment, therefore you will need the information from
Assignment 1.
THE MANUFACTURING SITUATION
A company manufactures 4 products, Pilts, Relts, Stuns, and Super Stuns, which are assemblies of different
combinations of 5 basic components A, B, C, D, and E. The product structure (Bill of Materials) of each
product is as follows (Figure 1) with the number in brackets being the number of each component required per
product:
Figure 1: The Bill of Material for the products.
These products are manufactured by processes involving 6 machines (M1-6) and an assembly process as shown
in Figure 2.
Figure 2: Manufacturing processes for the products.
Components A and B are fabricated on Line 1, which involves three sequential processes on M1, M2 and M3,
with a maximum capacity of 25 / week. Components C and D are fabricated on Line 2, which involves process
on M4 and M5, with a maximum capacity of 15 / week. Component E is fabricated on line 3 involving a single
process M6 with a maximum capacity of 30 / week. The maximum capacity for the Assembly line is 10 / week.
Each machine has an average production rate of parts per day as indicated, although considerable process
Pilt
A(1) C(1)
Stun
B(1) C(1) A(2) D(1)
Relt
E(1)
S.Stun
B(1) D(1) E(2)
M1
3.5 / day
M2
3.0 / day
M3
3.5 / day
M6
2.5 / day
M5
2.0 / day
Assembly
(10 / week)
C,D
A,B
M4
3.5 / day
E
Line 1
Line 2
Line 3
Line 1 = 25 / w
Line 2 = 15 / w
Line 3 = 30 / w
Assembly = 10 / w
variability exists. Changeover times are involved on individual machines when they change from one
component to another. However, the assembly line is flexible and can change between different products
without any loss of production time.
The weekly demand, as given in Assignment 1, for the products over the past 6 weeks has been given in Table
1 (wk-1 represents last week, wk-2 the week before last etc).
Wk -6 Wk -5 Wk -4 Wk -3 Wk -2 Wk -1
Pilt 5 5 4 4 3 3
Relt 3 4 4 3 3 4
Stun 1 1 1 1 3 2
S.Stun 1 0 1 2 1 1
A “Bill of Resources” for each product has been set up, of which a simplified form is given in Table 3 below:
Line 1 Line 2 Line 3 Assembly
Component A 0.4 / hr 0.25 / hr
Component B 0.4 / hr 0.25 / hr
Component C 0.344 / hr 0.25 / hr
Component D 0.344 / hr 0.25 / hr
Component E 0.312 / hr 0.25 /hr
Item Master File for the
Item On Hand LT Lot Size
(multiples)
Scheduled Receipt
Period Quantity
Unit Value $
Component A 0 1 1 1 2 10.00
Component B 0 1 1 1 2 10.00
Component C 0 1 1 1 2 10.00
Component D 0 1 1 1 2 10.00
Component E 0 1 1 1 2 15.00
Pilt 1 1 1 1 2 70.00
Relt 1 1 1 90.00
Stun 1 1 1 110.00
Super Stun 1 1 1 200.00
Company Scheduling Notes and Policies
1. Delay of a customer’s order costs 10% of the value of the order per week.
2. Customer order may be delayed a maximum of two weeks.
3. It is possible to halve lead time, but the cost of producing or ordering the item increases by 50% (e.g.
workers get paid time and a half for overtime.
QUESTIONS:
(Please make appropriate assumptions where it is necessary after clearly stating them. Please use the
information given above, if relevant, and the forecast you have developed in your first assignment.)
1. Generate an MPS for a period of four weeks by using the forecasting values you have generated in your
assignment 1.
2. By using the MPS in question 1 and the above given BOM and Inventory Master File, generate the MRP
matrices for all items and identify orders that are past due.
3. By using the MRP matrices in question 2, the company’s schedule notes and policies to identify two
options in meeting the prospective shortages. What are the ramifications of each option? Which option
would you recommend and why? Your report should include a copy of the MRP matrices as they would
appear after the recommendations have been enacted.