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    MRP Case

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    Nikitha Anne
    Phil Harris, the Production Control Manager at Brunswick Motors, wants to use Time-Phased Requirements Planning (MRP) to schedule engine assembly operations. He develops a sample MRP plan for one engine model considering requirements for two components: gear boxes and input shafts. The document provides the master schedule for engine production, product structure diagram showing component relationships and lead times, initial inventory levels, and cost data to determine an optimal ordering schedule that minimizes costs.

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    © All Rights Reserved
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    MRP Case

    Uploaded by

    Nikitha Anne
    140 views4 pages
    Phil Harris, the Production Control Manager at Brunswick Motors, wants to use Time-Phased Requirements Planning (MRP) to schedule engine assembly operations. He develops a sample MRP plan for one engine model considering requirements for two components: gear boxes and input shafts. The document provides the master schedule for engine production, product structure diagram showing component relationships and lead times, initial inventory levels, and cost data to determine an optimal ordering schedule that minimizes costs.

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    It is a production & Operations management case

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    MRP CASE

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    Phil Harris, the Production Control Manager at Brunswick Motors, wants to use Time-Phased Requirements Planning (MRP) to schedule engine assembly operations. He develops a sample MRP plan for one engine model considering requirements for two components: gear boxes and input shafts. The document provides the master schedule for engine production, product structure diagram showing component relationships and lead times, initial inventory levels, and cost data to determine an optimal ordering schedule that minimizes costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    140 views4 pages

    MRP Case

    Uploaded by

    Nikitha Anne
    Phil Harris, the Production Control Manager at Brunswick Motors, wants to use Time-Phased Requirements Planning (MRP) to schedule engine assembly operations. He develops a sample MRP plan for one engine model considering requirements for two components: gear boxes and input shafts. The document provides the master schedule for engine production, product structure diagram showing component relationships and lead times, initial inventory levels, and cost data to determine an optimal ordering schedule that minimizes costs.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    CASE

    Brunswick Motors, Inc. - An Introductory Case for MRP


    Recently, Phil Harris, the Production Control Manager at Brunswick, read an article
    on Time-Phased Requirements Planning. He was curious about how this technique
    might work in scheduling Brunswicks engine assembly operations, and decided to
    prepare an example to illustrate the use to Time-Phased Requirements Planning.
    Phils first step was to prepare a master schedule for one of the engine types
    produced by Brunswick - the Model 1000 engine. This schedule indicates the number
    of units of the Model 1000 engine to be assembled each week during the past twelve
    weeks, and is shown below. Next, Phil decided to simplify his requirements planning
    example by considering only two of the many components that are needed to complete
    the assembly of the Model 1000 engine. These two components, the Gear Box and the
    Input Shaft, are shown in the Product Structure Diagram shown below. Phil noted that
    the Gear Box is assembled by the Sub-Assembly Department, and is subsequently sent
    to the main engine assembly line. The Input Shaft is one of several component parts
    manufactured by Brunswick that are needed to produce a Gear Box sub-assembly.
    Thus, levels 0, 1, and 2 are included in the Product Structure Diagram to indicate the
    three manufacturing stages that are involved in producing an engine: the Engine
    Assembly Department, the Sub-Assembly Department, and the Machine Shop.
    The manufacturing lead times required to produce the Gear Box and Input Shaft
    components are also indicated in the Product Structure Diagram. Note that two weeks
    are required to produce a batch of Gear Boxes, and that all of the Gear Boxes must be
    delivered to the assembly line parts stockroom before Monday morning of the week in
    which they are to be used. Likewise, it takes three weeks to produce a lot of Input
    Shafts, and all of the shafts that are needed for the production of Gear Boxes in a given
    week must be delivered to the Sub-Assembly Department stockroom before Monday
    morning of the week.
    In preparing the MRP example Phil planned to use the attached worksheets, and to
    make the following assumptions:

    1. Seventeen Gear Boxes are on hand at the beginning of week 1 and five Gear
    Boxes are currently on order to be delivered at the start of week 2.
    2. Forty Input Shafts are on hand at the start of week 1 and twenty-two are
    scheduled for delivery at the beginning of week 2.

    ASSIGNMENT:
    1. Initially, assume that Phil wants to minimize his inventory requirements. Assume that
    each order will be only for what is required for a single period.
    2. Phil would like to consider the costs that his accountants are currently using for
    inventory carrying and setup for the gear box and input shafts. These costs are as
    follows:
    Part___________Cost
    Gear Box

    Setup = $90/order
    Inventory Carrying Cost = $2/unit/period

    Input Shaft

    Setup = $45/order
    Inventory Carrying Cost = $1/unit/period

    3. Given the cost structure, determine a schedule that minimizes cost.

    Model 1000 Master Schedule


    Weeks

    Demand

    15

    10

    15

    20

    10

    Model 1000 Product Structure


    Engine Assembly

    Crankcase

    Gear Box
    Lead Time = 2 weeks
    Used: 1 per engine

    Input Shaft
    Lead Time = 3 weeks
    Used: 2 per gear box

    10

    11

    12

    16

    Engine Assembly Master Schedule


    Weeks

    10

    11

    12

    10

    11

    12

    Quantity

    Gear Box Requirements


    Weeks

    Gross
    Requirements
    On Hand
    Scheduled
    Receipts
    Net
    Requirements
    Planned Order
    Release
    Input Shaft Requirements
    Weeks
    Gross
    Requirements
    On Hand
    Scheduled
    Receipts
    Net
    Requirements
    Planned Order
    Release

    10

    11

    12

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