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##### For this exercise you are the operations manager

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Question

For this exercise you are the operations manager for the local Acme Tricycle Company and will;need to put together the plan for 2012. All work must be shown.;The following information is applicable to all;problems. The indented BOM for a tricycle is;presented below;You have the following parts inventory on hand at the beginning of 2012;A;200;B;500;C;250;D;650;E;400;F;450;G;750;H;420;I;375;J;210;K;575;L;M;N;O;P;600 2500 850 1050 850;Demand for 2011 was;Month;Januar;y;Februa;ry;March;April;May;June;Production time is 0.5 hours per unit (2 units/hr);month Average Labor Cost is \$10/hour;unit;Overtime Cost is \$15/hour;Workweek is 5 days, 8 hours per day;Dema;nd;2300;1900;2400;2700;3300;3300;Assume 20 Workdays per;Shortage Cost is \$20 per;Inventory Cost is \$5 per unit;Hiring Cost is \$100, Layoff Cost is \$200;Due to your contract with the union, you can only hire new workers at the beginning of;Quarter 3. Layoffs can only occur at the end of Quarter 2. Overtime is authorized only in;Quarters 2 and 4. You currently have 10 assembly workers on staff.;Quarter 1 = Jan, Feb;Mar Quarter 2 = Apr;May, Jun Quarter 3 =;Jul, Aug, Sept Quarter;4 = Oct, Nov, Dec;The following ordering information is available for Rear;Tires: Cost per order is \$12;Annual Holding Cost is \$0.50 per unit;Assume 240 work days per year that tires are;required Lead Time 10 days;Assignment;Given the information above;1. Using Least Squares Regression, calculate the demand forecast for each month of 2012;(round each forecast up to the nearest whole number for ease of calculations).;2. Using your forecast, calculate the quarterly production plan for 2012.;3. Draw the Product Structure Tree for the tricycles.;4. Determine for the month of January 2012 what your net requirements for all BOM;components are.;5. Using the actual tricycle demand for 2011 and the Q-Model, calculate the Optimal;(Economic) Order Quantity and Reorder Point for Rear Tires.;6. Design and Diagram a process for assembling the tricycles.;View Full Attachment;Additional Requirements;Min Pages: 2;Level of Detail: Show all work

Paper#18031 | Written in 18-Jul-2015

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