Read “Space Age Furniture Company” in Chapter 9 of your text. Respond to the following and include...

Question

Read “Space Age Furniture Company” in Chapter 9 of your text. Respond to the following and include any Materials Requirement Planning (MRP) calculations:

Develop an MRP for Space Age Furniture Company using the information in the case including the production of sub-assemblies in lot sizes of 1,000.
The lot size of 1,000 for sub-assemblies has produced a lumpy demand for part 3079. Suggest ways for improvements over sub-assemblies in lot sizes of 1,000.
Analyze the trade-off between overtime costs and inventory costs.
Calculate a new MRP that improves the base MRP.
Compare and contrast the types of production processing—job shop, batch, repetitive, or continuous—and determine which the primary mode of operation is and why.
Describe ways that management can keep track of job status and location during production.
Recommend any changes that might be beneficial to the company and/or add value for the customer.

The final case study should demonstrate your understanding of the reading as well as the implications of new knowledge. The paper should integrate readings, scholarly sources, and class discussions into work and life experiences. It may include explanation and examples from previous events as well as implications for future applications.

Must be 10 to 12 double-spaced pages in length (not including the title and reference pages) and formatted according to APA style as outlined in the Ashford Writing Center.
Must include a title page with the following:
1. Title of paper
2. Student’s name
3. Course name and number
4. Instructor’s name
5. Date submitted
Must begin with an introductory paragraph that has a succinct thesis statement.
Must address the topic of the paper with critical thought.
Must end with a conclusion that reaffirms your thesis.
Must use at least five scholarly sources.
Must document all sources in APA style, as outlined in the Ashford Writing Center.
Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.

Robert · Accepted Answer

RUNNING HEADER: MRP – CASE ANALYSIS 
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MRP – CASE ANALYSIS
RUNNING HEADER: MRP – CASE ANALYSIS 
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Table of Contents 
1. Introduction          3 
2. Material Requirement Planning – A Background     3 
3. Case / Problem Background       6 
4. Solution          7 
References          13
RUNNING HEADER: MRP – CASE ANALYSIS 
3 
 
MRP – CASE ANALYSIS 
1. Introduction 
The objective of the study relates to a case involving challenges and issues with 
respect the production process at a Furniture company. The challenges relates to 
scheduling of the production process that share assembly processes and the cost 
redundancies and tradeoffs between overtime salaries and inventory costs.
Operations and supply chain constitute the critical function in any organization which 
ensures the raw materials are sourced, processed and the end product/ services are 
then delivered, all in a manner that is effective and efficient in both cost and quality 
terms. However these tasks are complicated and the challenges and issues faced by 
the organizations vary and depend upon their individual processes and quality 
standards. One of the most critical and effective tool in scheduling and managing 
production processes is Material Requirement Planning (Russell & Bernard, 2000).
2. Material Requirement Planning – A Background 
Material Requirement Planning is a production planning tool that is based on 
computer and control systems of inventory. Material Requirement Planning is related 
to both scheduling of production as well as control of inventory. It can be seen as a 
control system for materials which operates with an objective for keeping sufficient 
levels of inventory in assuring that the essential materials are accessible when 
required. Material Requirement Planning is most applicable in case of circumstances 
that involve multiple set of items with intricate bill of materials. Material 
Requirement Planning may not very relevant in case of job shop or else in case of 
processes that are continuous and which are linked tightly (Russell & Bernard, 2000). 
RUNNING HEADER: MRP – CASE ANALYSIS 
4 
 
Some of the critical goals of the Material Requirement Planning systems are to 
undertake simultaneously the following, 
I. Ensuring availability of the products, components and materials for 
production processes that are planned and for delivery to customers and 
other distribution centers. 
II. Maintaining lowest possible levels of inventories 
III. Planning activities related to manufacturing, schedules of delivery, and 
activities of purchasing.
Material Requirement Planning is specifically applicable to production environments 
wherein the demands of various set of components as well as sub-assemblies rely over 
the demand of materials which face demand from external sources. Demand in case of 
end items is not dependent. However contrarily, the demands for components utilized 
for manufacturing the end items rely over the demands arising for end items. The 
differences among the demands that are dependent and independent are crucial for 
categorizing the inventory items as well as development of systems for managing the 
items in each of the demand classifications. Material Requirement Planning system is 
established for coping in a better manner with demand items that are dependent 
(Russell & Bernard, 2000).
The three of the critical inputs for a system of Material Requirement Planning are as 
follows (i) schedule of master production, (ii) the records of product structure, and, 
(ii) the records of inventory status. In case any of the basic inputs as listed here is 
missing then the system for Material Requirement Planning shall not function.
RUNNING HEADER: MRP – CASE ANALYSIS 
5 
 
The demand in case of end items are scheduled across number of time lines and then 
recorded over the master production schedules. This master production schedule 
illustrates the extent of the items that is needed and the time when that is required. 
The master production schedules are produced from the forecasts as well as firm 
orders of the customers with respect to the end items, requirements of safety stocks, as 
well as the internal orders. Material Requirement Planning assumes master schedules 
for the end items and then translates them to individually time phased requirements 
for component (Volman et al, 1992).
The records of product structure, which is also referred to as the bill of material 
record, encompass information for each of the items or assemblies needed for 
producing the end items. Information relating to each of the item, like that of part 
numbers, descriptions, quantities for each of the assembly, subsequent higher 
assemblies, lead time, and quantities for each of the end items, needs to be accessible 
(Volman et al, 1992).
The records of inventory status encompass the status with respect to all of the items in 
the inventory, which includes the hand inventories as well as scheduled receipt. All 
the records have to be maintained up-to date, with all of the withdrawal, disbursement 
and receipt being documented for maintaining integrity of the record.
Material Requirement Planning shall determine using the schedule of master 
production as well as the records of product structure, the gross levels of components 
requirement. The gross levels of components requirement shall be brought down by 
the inventory that is available as illustrated in the records of inventory statuses 
RUNNING HEADER: MRP – CASE ANALYSIS 
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(Volman et al, 1992).
3.

Read “Space Age Furniture Company” in Chapter 9 of your text. Respond to the following and include any Materials Requirement Planning (MRP) calculations: Develop an MRP for Space Age Furniture Company...

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