Space Age Furniture Company: A Case Study
“A material requirements planning (MRP) system is usually implemented with several constraints, such as replenishment of inventories on a period-by-period bases, which obstruct its dynamic performance” (Timon Chih-Ting & Wolfe, 2000). In developing a MRP system for Space Age Furniture Company three important data requirements needed are: the master schedule, bill of materials, and inventory records. Per Vonderembse and White (2013), the three major inputs of an MRP system are the master production schedule (MPS), bills of material (BOM) and inventory records. The master schedule determines the exact number of parts needed to be produce to complete production; the bill of material provides a list of component and quantities needed--without
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Right now, Ed works 8 hour shifts five days a week, and produces 1200 units (a unit every 2 minutes, 30 units every hour, and 240 per shift) of part no. 3079 produced weekly. However, received an order which requires 2000 units for part no. 3079 (1,000 sub-assemblies part no. 257 (Saturn) and 1,000 sub-assemblies is for part no. 435 (Gemini)) which means an additional 800 units more of what Ed produces during his regular shift, which means should Ed work in producing the additional units, he will work 26.6 hours in overtime to meet demand of the job. Unfortunately, due to the time restriction, the company not does have the time necessary to hire and train a new workman of Ed’s caliber to complete meet the order demand. Therefore, since Space Age has one week lead time in which to produce the ordered furniture, so Coral must convince Ed to produce the maximum number of part no. 3079 without incurring overtime. The completed parts would then be held stock until receives additional commissions. Space Age MRP process will go through the following steps in the Illustration
Right now, Ed works 8 hour shifts five days a week, and produces 1200 units (a unit every 2 minutes, 30 units every hour, and 240 per shift) of part no. 3079 produced weekly. However, received an order which requires 2000 units for part no. 3079 (1,000 sub-assemblies part no. 257 (Saturn) and 1,000 sub-assemblies is for part no. 435 (Gemini)) which means an additional 800 units more of what Ed produces during his regular shift, which means should Ed work in producing the additional units, he will work 26.6 hours in overtime to meet demand of the job. Unfortunately, due to the time restriction, the company not does have the time necessary to hire and train a new workman of Ed’s caliber to complete meet the order demand. Therefore, since Space Age has one week lead time in which to produce the ordered furniture, so Coral must convince Ed to produce the maximum number of part no. 3079 without incurring overtime. The completed parts would then be held stock until receives additional commissions. Space Age MRP process will go through the following steps in the Illustration