CYPRUS INTERNATIONAL UNIVERSTY

FACULTY OF ENGINEERING
DEPARTMENT OF INDUSTRIAL EGINEERING
INDE342 PRODUCTION PLANNING II
SPRING 2020-2021
CASE STUDY Due Date: 31/05/2021
Part 1:

Ben Floyd really enjoyed wood shop in high school, so he used an inheritance to buy some basic
woodworking tools. He started out doing odds jobs, and then one day he made a porch swing for his house.
Several people saw it and asked him to make one for them word of mouth brought him many customers. In
June of 2008 he married Bobbie Ruth, marketing graduate. Bobbie Ruth saw a chance to expand the swing
business to similar products and eventually have hardware, building supply and furniture stores. Thus BF
Swing was born. Due to his love of his work and Bobbie Ruth’s marketing ability, the business prospered.
Today, they make stools, rockers as well as swings. The company now employees about 35 people five days
a week.

Due to growth, they have some trouble. To avoid this, they have decided to hire someone who knows
production planning systems to help them. After interviewing, they chose you to fill this position. They give
you following information and wants to develop following production planning problems.

The following table gives the standard processing time (in minutes) for each operation of the tree products.
In addition, it contains the expected time available in each department per week.

Processing Time (minutes)

Department Stool Rocker Swing Available (Hours)
Drill 7 10 11 70
Lathe 15 0 0 35
Crosscut saw 3 16 10 105
Rip Saw 1 3 4 40
Mortise 0 10 8 70
Tenon 3 22 11 105
Router/Shaper 0 5 3 35
Plane 0 13 7 70
Sand 5 25 35 145
Assemble 12 30 45 200
Finish 5 15 22 80
Total 50 mins 157 mins 200 mins
The forecasted demand for these products are as follows:

Forecast Demand Forecast Demand

Week Stool Rocker Swing Week Stool Rocker Swing
20 88 281 25 26 106 320 177
21 99 341 25 27 105 312 173
22 121 302 22 28 86 341 65
23 113 303 21 29 99 350 295
24 97 324 28 30 104 364 264
25 86 311 198 31 113 310 204

Ben Floyd and Bobbie Ruth wants you to develop two possible aggregate planning plans.

 The first plan uses a constant workforce without backorder.

 The second plan uses zero inventory plan.
 According to the plans, which plan do you recommend them?

To develop the two plans and calculate their associated costs, you need to know that the BF Swing time
wage is $15 per hour, hiring costs are $500 per employee, and firing cost are $700 per employee. A stool
costs $250 to make, a swing costs $380 and a rocker costs $150. The inventory cost carrying rate is 20
percent per year.

Part 2:

Ben Floyd and Bobbie Ruth now needs a master production schedule and a rough-cut capacity check to
determine whether the capacity at each department is adequate to support the forecasted demand. Using
the forecasted demand, first determine the master production schedule (MPS) then develop rough-cut
capacity plan to check the available capacity of each departments, calculate the load for each department
for each week of the planning horizon. Highlight any week(s) in which problems might occurs. Give a
suggestion for the week(s) which problem occurs. Currently, there are 80 stools, 300 rockers, and 110 swing
in inventory.

Part 3:

Ben Floyd and Bobbie Ruth review yours rough-cut capacity planning reports and developed master
production schedule. Ben Floyd and Bobbie Ruth wants you to generate Material Requirements Planning
(MRP) for product swing and stool. The new MPS values, Product tree and inventory records are given
below. Generate the material requirements. Assume all items use lot-for-lot policy. Lead time is 2 week for
all item except item Z and Y which have a lead time of 3 weeks.
MPS for Stool and Swing

Week 20 21 22 23 24 25 26 27 28 29 30 31
Stool 125 250 122 110 250 110 150 164 256
Swing 200 20 50 25 112 251 125 26 15 18

Inventory and Schedule receipts for item

Component On hand Inventory Schedule Receipts

J 100 -
F 500 100 in week 21
R 250 250 in week 25
X 100 -
Y 50 300 in week 30
Z 50 -

Stool

Component J (2) Component F (3)

R (2) X (10)

Swing

Component J (2) Component Z (4)

Y (2)

Important Notes:

1. This is not a group work project. Each student should submit one formal report, properly written.
2. You should upload all your documents to Moodle Portal.