Matthew and Mark work for AMG, and want to do some aggregate planning for the manufacturing of brake calipers for Mercedes Benz S63 sedans.
1. Matthew and Mark work for AMG, and want to do some aggregate planning for the manufacturing of brake calipers for Mercedes Benz S63 sedans. They figure the front brake calipers take 8 hours to forge and assemble while the rear calipers take 4 hours to forge and assemble. They pay their people $22.00 per hour and it costs them $900.00 to hire and $1,300 to fire each employee. They currently employ 3 people and have 129 front calipers in inventory and 113 rear calipers in inventory. Inventory carrying costs are $7.00 per labor hour. Assume 40 hours per week and 4 weeks per month. Please complete an aggregate planning table for level production with no back orders and determine total costs for 6 months. This problem is worth 10 points vs. the usual 5. The following is the 6 month demand forecast in units: Month 1 2 3 4 5 6 Front Calipers 200 750 330 550 240 180 Rear Calipers 230 730 340 500 250 220 You will need to first figure what the level production amount will be using the following information over 6 periods: 1 2 3 4 5 6 Cumulative Demand Beginning Inventory (Constant using the inventory levels given) Total Cumulative Production Monthly Production Use the following model to construct your analysis: 1 2 3 4 5 6 Beginning Inventory Demand Production Ending Inventory Hire Costs Fire Costs Wage Costs Inventory Costs Total Costs 2. John needs 40 Eternal Light flashlights by week 6. Each Eternal Light flashlight requires 3 bulbs, and each bulb requires 3 filaments. There are 90 bulbs and 10 filaments in beginning inventory. John ordered an additional 20 bulbs and they are arriving in week 2. The lead time for the flashlights is 2 weeks, the lead time for the bulbs is 2 weeks, and the lead time for the filaments is 1 week. Please prepare: A. The Product Structure Tree B. A Material Requirements Plan for the flashlights, bulbs and filaments. You can you the attached Blank Table if you wish.
