The document discusses a production planning project where the author plays the role of a production planner for the Greek Manufacturing Company. The company produces two products, Alpha and Beta, using various component parts. The production planning is done on a weekly basis, checking inventory levels, placing orders internally and with vendors to fulfill customer orders. Three different approaches are discussed - ad-hoc planning, using reorder points, and developing a decision support system using forecasting. The maximum profits achieved under each approach are $732,238.75 for ad-hoc, $527,392.25 using reorder points, and $954,420.75 using the decision support system.
1. Parag Kapile fx7378
MRP DSS PROJECT
In this project I am playing the role of a production planner of the "GREEK MANUFACTURING
COMPANY" and developing a decision support system. I am managing two products Alpha
and Beta for which orders are placed by me in variable quantity throughout the week. These
Alpha and Beta are made up of comma, Delta, Epsilon, Fi and gamma. Some of these products
are produced within company and some are being purchased from outside. In carrying out
production the parts are routed through passing machines kappa, Mu, phi, rho and sigma
within the company, where processing time is spent.
The production planning is done on weekly basis. At the beginning of the week, inventories
are checked and orders are released both within company and to the vendors. Through last
week processing of the orders takes places. As customers’ orders arrive, they filled from
inventory on hand. Orders are may be filled partially if there is in sufficient on hand inventory
for the whole order. Unfilled orders are placed on file and filled when the product is available
they will be repeated week after week which will be simulated with help of Excel sheet.
1) Highest profit made while playing in the ad-hoc manner at the end of week 32 is: -
$732238.75
2) Playing game on re-order point basis, the main idea of reorder point is to set minimum
level of inventory. Now will choose our own order sizes. We will try different ROP and order
sizes.
Item Re-order point Order Size
Alpha 300 2000
Beta 350 2500
Comma 400 2000
Delta 150 600
Epsilon 400 700
Fi 400 800
Gamma 350 750
The maximum profit achieved by using re-order point is this $52739.25
2. Parag Kapile fx7378
3) We play the game by using DSS. To play game we need to do forecasting of both Alpha
and Beta
We used forecast formula Y= mX+c to calculate forecast up to 32 week. Now we will fill
forecasted values into MPS schedule of MRP worksheets by using VLOOKUP function from
excel used forecast data into MPS Table. Linked all inventory and other values from main
menu to MPS table. Then we did MRP explosion by using lot to lot policy and with lead time
of one week.
The Maximum Profit achieved by using DSS is $ 954420.75 of 32 week.
