b. Evaluate the rought-cut capacity planning procedure used by the production co

Question

b. Evaluate the rought-cut capacity planning procedure used by the production control manager

6. Management at the Green Valley Furniture Company has just approved the fol- lowing master production schedule for its make-to-stock products: End product Week 1 Week 2 Week 3 Week 4 40 The remaining 10 units from a batch of 30 started last week. a. The production control manager is concermed about capacity requirements for one of the automatic machines in the firm's wood shop the #10 molder whose fixed capacity is 40 hours per week. Prepare a rough-cut capacity plan for the #10 molder using the resource profile data below. What suggestions would you make? Hours per unit of end product produced Product #10 molder Operation setback 1 week 1 week 1 week b. The manager has been using the following to estimate capacity requirements: Weekly forecast of final product sales Product Forecast (units/week) 25 Manager's estimated capacity requirements per week (#10 molder) Product Forecast Resources/unit Capacity requirements 0.1 hour 1.5 hour 0.1 hour 1.0 hours/week 37.5 hours/week 1.5 hours/week 40.0 hours/week 25

Explanation / Answer

a.

Calculate the hours per week for each product

The fixed capacity 40 hours per week, that is why during week 1 and week 2 the machine wil work good with the production program

Now for week 2 and week 3, the time is exceeded, that is why there is necessary to fix:

1. Reduce the hours per unit of end product produced to 1 for both weeks

2. The second option it would be to reduce the product produced per week, but that would not be a viable option

b.

The capacity requirements indicate that the hours per week are enough according with the production control manger

End Product Week 1 Week 2 Week 3 Week 4 A 30*0.1=3 0 0 10*0.1 = 1 B 0 40*1.5 = 60 36 * 1.5 =36 0 C 10*0.1 = 1 0 0 30*0.1 = 3

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