![]() ![]() It costs $0.25 per week to hold any of these parts over from one week to the next. Whenever part 3079 is made, there is no set-up time, butprocessing takes 0.03 hour per unit. There is not any on-hand inventory of part3079, and there are no orders in process.Įd Szewczak earns $22 per hour and gets a 50% premium for any overtime work. Lead time for both these subassembliesis one week, and no inventory is expected to be on hand for either part at the beginning of week 1. In fact, an order for1,000 of subassembly 435 is due to be received in week 1, as is an order for 1,000 of subassembly 257. To minimize change over time, Space Age has decided that these subassemblies should be made inminimum quantities of 1,000 at a time, although there is no problem with capacity on the equipment that makes them. However, both of the subassemblies areproduced using the same equipment. Part 3079 may be produced in any quantity since the lathe that makes it is not used for anything else. One of part 3079 is used in each subassembly, and one of each subassembly is used in each of the final products. 257, which is used inthe Saturn microwave stand. 435, which is used in the Gemini TV stand, and no. The part in question, 3079, is used in two different subassemblies: no. The master schedule for producing these two items for the next six weeks is shown below. Previously Space Age had estimated that it cost $1.25 per week to store each Gemini and $1.50 per week to storeeach Saturn that wasn't shipped immediately. ![]() Instead, everything in the master schedule is being produced for customer orders, so all products areshipped almost immediately. ![]() In fact, Space Agecarries 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 andemployment record are extremely difficult to find. However, due to the workloadfor 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.As Coral knows, Ed has been with the company a long time and is an excellent, reliable employee. 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. Onceset 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 onlyfor making that part. However, two of theseproducts-the Saturn microwave stand and the Gemini TV stand-have a part (no. These products aremade in various sizes and with various features, but all follow basically the same production and assembly operations. The Space Age Furniture Company manufactures tables and cabinets to hold microwave ovens and portable televisions. It may include explanation andĮxamples from previous events as well as implications for future Should integrate readings, scholarly sources, and class discussions The reading as well as the implications of new knowledge. The final case study should demonstrate your understanding of Recommend any changes that might be beneficial to the company Shop, batch, repetitive, or continuous-and determine which theĭescribe ways that management can keep track of job status and Suggest ways for improvements overĪnalyze the trade-off between overtime costs and inventoryĬalculate a new MRP that improves the base MRP.Ĭompare and contrast the types of production processing-job The lot size of 1,000 for sub-assemblies has produced a lumpyĭemand for part 3079. Information in the case including the production of sub-assemblies Respond to the following and include any Materials Requirementĭevelop an MRP for Space Age Furniture Company using the Read “Space Age Furniture Company” in Chapter 9 of your text. ![]()
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