Space Age Furniture Company

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Read “Space Age Furniture Company” .  Respond to the following and include any Materials Requirement Planning (MRP) calculations:

The Space Age Furniture Company manufactures tables and cabinets to hold microwave ovens and portable televisions. These products are made in various sizes and with various features, but all follow basically the same production and assembly operations. However, two of these products—the Saturn microwave stand and the Gemini TV stand—have a part (no. 3079) that requires machining on a special lathe used only for making that part. At present the machine is run by Ed Szewczak, a machinist who also operates other machines in Space Age's shop. Once set up and started, the lathe can run nearly unattended. However, the machinist must be present (even if not actually attending the machine) any time one of the machines, including the lathe, is in operation. At present, Ed works a regular 40-hour week. However, due to the workload for producing part 3079, it has been necessary to schedule frequent overtime for him in order to finish the necessary parts on time.

 

Coral Snodgrass, operations manager for Space Age, has just heard from Ed's foremen that Ed is becoming unhappy about so much overtime. As Coral knows, Ed has been with the company a long time and is an excellent, reliable employee. Skilled machinists with Ed's experience and employment record are extremely difficult to find. Coral wonders what can be done to alleviate this problem.

 

Recently, Space Age began using an MRP system that has helped reduce inventories greatly and improve on-time deliveries. In fact, Space Age carries no finished-goods inventory. Instead, everything in the master schedule is being produced for customer orders, so all products are shipped almost immediately. Previously Space Age had estimated that it cost $1.25 per week to store each Gemini and $1.50 per week to store each Saturn that wasn't shipped immediately. The master schedule for producing these two items for the next six weeks is shown below.

 

                                                     Master Schedule

                                                               Week

                              1    2           3        4         5           6

Gemini            600      400      700      500      400      600

Saturn              300      400      400      600      300      300

 

Must be 15 double-spaced pages in length (not including the title and reference pages) and formatted according to APA style

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.

 

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.

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