Operations and Supply Chain Management The Core

276 OPERATIONS AND SUPPLY CHAIN MANAGEMENT
exhibit 9.9
Future Requirements for Meters A and B and Subassembly D
Stemming from Specific Customer Orders and from Forecasts
METER A METER B SUBASSEMBLY D
MONTH KNOWN FORECAST KNOWN FORECAST KNOWN FORECAST
3 1,000 250 410 60 200 70
4 600 250 300 60 180 70
5 300 250 500 60 250 70
exhibit 9.10
A Master Schedule to Satisfy Demand Requirements as
Specified in Exhibit 9.9
Week
9 10 11 12 13 14 15 16 17
Meter A
1,250
850
550
Meter B
470
360
560
Subassembly D
270
250
320
data. Exhibit 9.9 shows the requirements for meters A and B and subassembly D for a
three-month period (months three through five). There are some “other parts” used to make
the meters. In order to keep our example manageable, we are not including them in this
example.
Developing a Master Production Schedule
For the meter and component requirements specified in Exhibit 9.9, assume that the quantities
to satisfy the known and random demands must be available during the first week of
the month. This assumption is reasonable because management (in our example) prefers to
produce meters in a single batch each month rather than a number of batches throughout
the month.
Exhibit 9.10 shows the trial master schedule that we use under these conditions, with
demand for months 3, 4, and 5 listed in the first week of each month, or as weeks 9, 13,
and 17. For brevity, we will work with demand through week 9. The schedule we develop
should be examined for resource availability, capacity availability, and so on, and then
revised and run again. We will stop with our example at the end of this one schedule,
however.
Bill-of-Materials (Product Structure)
The product structure for meters A and B is shown in Exhibit 9.11A in the typical way
using low-level coding, in which each item is placed at the lowest level at which it appears
in the structure hierarchy. Meters A and B consist of a common subassembly C and some
parts that include part D. To keep things simple, we will focus on only one of the parts,
part D, which is a transformer.