Read “Space Age Furniture Company” in Chapter 9 of your text. Respond to the following and include any Materials Requirement Planning (MRP) calculations:
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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