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Module Code and Title |
IFB105TC Production Planning and Control |
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School Title |
School of Intelligent Finance & Business |
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Assignment Title |
Individual Assessment (50%) |
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Submission Deadline |
Sunday 18th May 2025 |
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Final Word Count |
NA |
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Students:
The submission must meet the LMO requirements and must be saved as a PDF document and submitted via Learning Mall Online to the correct drop box. Only electronic submission is accepted and no hard copy submission.
All students must download their file and check that it is viewable after submission. Documents may become corrupted during the uploading process (e.g. due to slow internet connections). However, students themselves are responsible for submitting a functional and correct file for assessments.
Case Analysis (50%):
1. Submission: Deadline 18th May 2025
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
1. On the last day of 2024, Sam, manager of XEC, is responsible for developing a sales and operations plan for the coming year. Two types of products are assembled and utilize the same components. They require the same assembly time and labor skills. The available planning information is as follows:
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Quarter |
Watches |
Mobiles |
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1 |
10,000 |
9,000 |
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2 |
15,000 |
7,000 |
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3 |
16,000 |
19,000 |
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4 |
3,000 |
10,000 |
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Quarter 1: Forecasting |
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Beginning inventory |
600 watches 400 mobiles |
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Production costs |
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Regular time |
$15.00 per unit |
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Overtime |
$22.50 per unit |
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Subcontract |
$30.00 per unit |
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Part-time |
$36.00 per unit |
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Inventory |
$3.00/unit/quarter, average inventory during each quarter |
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Backorder |
$24.00/unit/quarter (based on back orders at end of quarter) |
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Hiring |
$300.00/full-time employee (no cost if part-time) |
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Layoff |
$1,500.00/full-time employee (no cost if part-time) |
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Production rates Regular Overtime (max.) Part-time Initial workforce size |
500 units/full-time employee per quarter (of either unit) 200 units/full-time employee per quarter (of either unit) 400 units/part-time employee per quarter (of either unit) 44 full-time employees (beginning of quarter 1) |
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Additional assumptions 1. Part-time employees may not work overtime. 2. Assume 100% utilization of employees on regular time (i.e., all employees on the payroll during a period produce at least 500 units). If overtime is used, up to another 200 units can be produced per employee. |
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Suppose that Sam revised the previous forecast for quarter 1 sales of mobiles from 9,000 to 11,000 units. He will now have to develop and analyze several alternative-level plans for 2025. Keep in mind that each of these plans must consider (22 points):
• Beginning inventory of 600 watches and 400 mobiles.
• Ending inventory and back orders for quarter 4 must be zero.
• Each plan must have the same level total-output rate each quarter.
a. Develop a level plan that uses overtime by regular, full-time employees to meet the new demand conditions (with no additional hiring). Calculate the total annual cost of this plan.
b. Develop a second plan that will use regular employees (no overtime) plus subcontracting to meet the new demand conditions (with no additional hiring). Calculate the total annual costs.
c. Another possibility would be to hire an additional full-time employee on January 1 and employ him/her for the full year. Calculate the total annual cost.
2. Further, Sam uses MPS time-phased records for planning end-item production. He is currently working on a schedule for the V60, one of XEC’s top-selling watches. Sam uses a production lot size of 70 and a safety stock of 5 for the V60 watch. (22.5 points)
a. Complete the MPS time-phased record for product P24.
b. Per the above MPS, can XEC accept the following orders? Update the MPS record for accepted orders.
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Order |
Amount |
Desired Week |
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1 |
40 |
4 |
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2 |
30 |
6 |
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3 |
30 |
2 |
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4 |
25 |
3 |
3. The PPC system at XEC is running weekly to update the MPS and MRP records. At the start of week 1, the MPS for Products VOVO and POPO is:
Master Production Schedule
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Week |
1 |
2 |
3 |
4 |
5 |
6 |
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VOVO |
10 |
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25 |
5 |
10 |
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POPO |
5 |
30 |
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20 |
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20 |
One unit of Item C is required to manufacture one unit of either VOVO or POPO. Purchasing lead time for Item C is two weeks, an order quantity of 40 units is used, and no (zero) safety stock is maintained for this item. Inventory balance for Item C is 5 units at the start of week 1, and there’s an open order (scheduled receipt) for 40 units due to be delivered at the beginning of week 1. (17.5 points)
a. Complete the MRP record for Item C at the beginning of week 1:
b. During week 1, the following transactions occurred for Item C; given this information, complete the MRP record for Item C starting from week 2.
1. The open order for 40 units due to be received at the start of week 1 was received on Monday of week 1 with a quantity of 30 (10 units of Item C were scrapped on this order).
2. An inventory cycle count during week 1 revealed that five units of Item C were missing. Thus, an inventory adjustment of -5 was processed.
3. Ten units of Item C were actually disbursed (instead of the 15 units planned for disbursement to produce VOVO and POPO). (The MPS of 5 in week 1for POPO was canceled due to a customer order cancellation.)
4. The MPS quantities for week 7 include 15 units for VOVO and 0 units for POPO.
5. Because of a change in customer order requirements, marketing has requested that the MPS quantity of
25 units for VOVO scheduled in week 3 be moved to week 2.
6. An order for 40 units was released.
4. Sam has just received an order for 70 watches of V60, to be shipped at the beginning of week 9. Information concerning the V60 assembly is given here: (12 points)
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V60 Watches |
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Item |
Lead Time/week |
Components |
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V60 |
2 |
A(2), B, C(3) |
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A |
1 |
E(3), D |
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B |
2 |
D(2), F(3) |
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C |
2 |
E(2), D(2) |
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D |
1 |
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E |
1 |
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F |
3 |
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a. Draw the product structure tree.
b. Construct a Gantt chart for the new order using front scheduling.
c. Construct a Gantt chart for the new order using back scheduling.