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IFB105TC Production Planning and Control
Individual Assessment (50%)
Sunday, 26 th May 2024
Case Analysis (50%):
1. Submission: Deadline 26th May 2024
Read carefully the case information, then you need to critically analyze the case, and answer the questions accordingly (no need to compile the answers as a report). Citation and references are preferable, where needed.
2. Format Requirements:
• Assignments must include the cover page with your student ID filled
• Pls. name the file as IFB105TC-PPC-Your ID
• All assignments must be typed, proof-read, and professional in appearance
• The word font should be ‘Times New Roman’ or ‘Calibri Light’ and font size 12 with 1.5 spacing.
• The left and right margins should be ‘Justify ’
• Harvard Referencing if citation and references apply
Individual Assessment
Tasks:
1. XEC employs workers who lay telephone cables and perform various other construction tasks. The company prides itself on good service and strives to complete all service orders within the planning period in which they are received. Each worker puts in 600 hours of regular time per planning period and can work as many as an additional 100 hours of overtime. The operations department has estimated the following staff requirements for such services over the next four planning periods:
|
Planning Period |
1 |
2 |
3 |
4 |
|
Demand (hours) |
21,000 |
18,000 |
30,000 |
12,000 |
XEC pays regular-time wages of $6,000 per employee per period for any time worked up to 600 hours (including undertime). The overtime pay rate is $15 per hour over 600 hours. Hiring, training, and outfitting a new employee costs $8,000. Layoff costs are $2,000 per employee. Currently, 40 employees work for XEC in this capacity. No delays in service, or backorders, are allowed. Prepare a chase strategy table using only hiring and layoffs. Pls. indicate the details as many as possible, and calculate the total cost by doing so. Also, per your answer, pls. discuss whether the chase strategy is an optimal approach in this case. (15 points)
2. Below is an incomplete master production schedule for a certain product, a setup cost of $50, a holding cost per week of $2, a beginning inventory of 0, and a lead time of 1 week. Pls. fill in the MRP table below and calculate the costs of using lot-for-lot for this l0-week period. (16 points)
|
WEEK |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
|
Gross requirements |
0 |
0 |
50 |
0 |
0 |
35 |
15 |
0 |
100 |
0 |
|
Scheduled receipts |
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Projected on hand |
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Net requirements |
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Planned order receipts |
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Planned order releases |
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3. XEC purchases discontinued appliances from various suppliers and then sells them on demand to retailers in the region. XEC operates 5 days per week, 52 weeks per year. Only when it is open for business can orders be received. The following data are estimated for a countertop mixer:
· Average daily demand = 100 mixers
· Standard deviation of daily demand = 30 mixers
· Lead time = 3 days
· Holding cost = $9.40/unit/year
· Ordering cost = $35/order
· Service level = 92%
The distributor uses a continuous review Q system.
a. What order quantity, Q, and reorder point, R, should be used? (14 points)
b. What is the total annual cost of the system? (5 points)
c. If on-hand inventory is 40 units, one open order for 440 mixers is pending, and no backorders exist, should a new order be placed? (5 points)
Suppose that a periodic review (P) system is used at the distributor in the above question, but otherwise, the data are the same.
d. Calculate the P (in workdays, rounded to the nearest day) that gives approximately the same number of orders per year as the EOQ. (2 points)
e. What is the total annual cost of the P system? (5 points)
Note: pls. include the calculation details as many as possible, every step might count for the result.
4. TOC would impact other departments in the corporation, and they would affect the production planning and control in return, could you imply what they are and explain? Pls. integrate into the context of Bosch. (16 points)
5. Excess capacity of afirm can lead to underutilization of its assets, while a decision to decrease capacity can result in lost opportunities. Identify examples where businesses have incurred substantial losses due to excess capacity and explain the reasons that may have resulted in this problem. (10 points)
6. Explain why the production and planning department should be concerned about priority systems in either service or manufacturing organizations. (12 points)
Note: no more than 500 words of each question (tables and calculations are excluded).