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MGT 510 Operations Management Final Project - Acme Tricycle Company




Question;MGT-510 Operations ManagementFinal ProjectThis project is designed to demonstrate that many of the concepts we have been studying are tiedtogether in a single enterprise. For this exercise you are the operations manager for the local AcmeTricycle Company and will need to put together the plan for 2012.The following information is applicable to all problems.The indented BOM for a tricycle is presented below:A Completed TricycleB(1) FrameC(2) Rear Wheel AssemblyD(1) Rear WheelE(1) Rear TireF(1) Axle AssemblyG(1) Front Wheel AssemblyH(1) Front WheelI(1) Front TireJ(1) Handle Bar AssemblyK(1) Handle BarL(1) StemM(2) Hand GripsN(1) Seat AssemblyO(1) SeatP(1) StemYou have the following parts inventory on hand at the beginning of 2012:A B C D E F G H I J K L M N O P200 500 250 650 400 450 750 420 375 210 575 600 2500 850 1050 850Demand for 2011 was:Month Demand Month DemandJanuary 1200 July 2300February 1300 August 1900March 1000 September 2400April 1400 October 2700May 2000 November 3300June 1700 December 3300Production time is 0.5 hours per unit (2 units/hr) Assume 20 Workdays per monthAverage Labor Cost is $10/hour Shortage Cost is $20 per unitOvertime Cost is $15/hour Inventory Cost is $5 per unitWorkweek is 5 days, 8 hours per day Hiring Cost is $100, Layoff Cost is $200Due 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. Youcurrently have 10 assembly workers on staff.Quarter 1 = Jan, Feb, MarQuarter 2 = Apr, May, JunQuarter 3 = Jul, Aug, SeptQuarter 4 = Oct, Nov, DecThe following ordering information is available for Rear Tires:Cost per order is $12Annual Holding Cost is $0.50 per unitAssume 240 work days per year that tires are requiredLead Time ? 10 daysAssignment:Given the information above:1. Using Least Squares Regression, calculate the demand forecast for each month of 2012 (round eachforecast 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) OrderQuantity and Reorder Point for Rear Tires.6. Design and Diagram a process for assembling the tricycles.


Paper#53448 | Written in 18-Jul-2015

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