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REMINDER
• In order to have high efficiency and effective of the tutorial, everyone
should involve and take part.

ENT 457 – Management, • Extra reading and effort is needed in order for having better
understanding.

production and operation

Sem 2 2020/2021
Tutorial 3

1 2

Chapter 8 Chapter 8
1. What is the difference between a gross requirement plan and a net 2. How does MRP II differ from MRP?
requirement plan? The difference between material requirements planning (MRP) and
The difference between a gross requirement plan and a net material resource planning II (MRP II) is that MRP II includes or
requirement plan is that a net plan adjusts for on-hand inventory integrates functions within the firm in addition to the management
and scheduled receipts at each level. of dependent demand inventories. Examples of these additional
functions include: Order entry, invoicing, billing, purchasing,
production scheduling, capacity planning, and warehouse
management.

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Chapter 8 Chapter 8
3. MRP is more than an inventory system; what additional capabilities 4. What are the options for the production planner who has
does MRP possess? a) Scheduled more than capacity in a work center next week?
MRP is usually a part of the overall production planning process. Its When a work center is only over capacity for 1 week (or a short
most important capability is including the timing/ scheduling factor time), the production planner has a number of options, including:
in inventory planning. MRP II, of course, addresses the
• Splitting an order to an earlier or later week
timing/scheduling of other resources in addition to inventory.
• Requesting overtime, an alternate (perhaps more expensive)
production process
• Subcontracting.

5 6

Chapter 8 Chapter 8
4. What are the options for the production planner who has 5. You have developed the following simple product structure of items
b) A consistent lack of capacity in that work center? needed for your gift bag for a rush party for prospective pledges in
A consistent lack of capacity suggests a capital investment to your organization. You forecast 200 attendees. Assume that there is
increase capacity, add a shift, or develop an outside source. Re- no inventory on hand of any of the items. Explode the bill of
design of the product may also be an alternative. material. (Subscripts indicate the number of units required.)
 An exploded bill yields the following:
 Item J: 200 units
 Item K: 200 × 1 = 200 units
 Item L: 200 × 4 = 800 units
 Item M: 200 × 2 = 400 units.
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Chapter 8 Chapter 8
1 hr L K
6. You are expected to have the gift bags in Question 5 ready at 5 pm.
However, you need to personalize the items (monogrammed pens,
note pads, literature from the printer, etc.). The lead time is 1 hour 2 hrs
J
to assemble 200 Js once the other items are prepared. The other 1 hr 4 hrs
items will take a while as well. Given the volunteers you have, the
other time estimates are item K (2 hours), item L (1 hour), and item
M (4 hours). Develop a time-phased assembly plan to prepare the Someone should start on K
gift bags. item M by noon.

12 pm 1 pm 2 pm 4 pm 5 pm
9 10

a) Design a product structure noting

Chapter 8 the quantities for each item and show the
7. As the production planner low-level coding. Chapter 8
for Xiangling Hu Products, Bracket (1)
Inc., you have been given b) Determine the gross quantities needed of each item if you are to
a bill of material for a Base (1) Spring (2) clamps (4) assemble 50 brackets.
bracket that is made up of The gross requirements are for
a base, two springs, and • Base : 1 × 50 = 50
Clamp (1) Housing (2) clamps (4)
four clamps. The base is • Spring : 2 × 50 = 100
assembled from one • Clamps : 5 × 50 = 250
clamp and two housings. Handle (1) Casting (1) Bearing (2) Shaft (1) Handle (1) Casting (1) • Handle : 1 × 250 = 250
Each clamp has one • Casting : 1 × 250 = 250
handle and one casting. • Housing : 2 × 50 = 100
Each housing has two • Bearing : 2 × 100 = 200
bearings and one shaft.
• Shaft : 1 × 100 = 100
There is no inventory on
hand. 11 12
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Chapter 8 Chapter 8
c) Compute the net quantities needed if there are 25 of the base 8. Your boss at Xiangling Hu Products, Inc., has just provided you with
and 100 of the clamp in stock. The gross requirements are for the schedule and lead times for the bracket in Question 7. The unit
is to be prepared in week 10. The lead times for the components
• Base : 1 × 25 = 25
are bracket (1 week), base (1 week), spring (1 week), clamp (1
• Spring : 2 × 25 = 50 week), housing (2 weeks), handle (1 week), casting (3 weeks),
• Clamps : 5 × 25 = 125 bearing (1 week), and shaft (1 week).
125 − 100 = 25 a) Prepare the time-phased product structure for the bracket.
• Handle : 1 × 25 = 25
• Casting : 1 × 25 = 25
• Housing : 2 × 25 = 50
• Bearing : 2 × 50 = 100
• Shaft : 1 × 50 = 50 13 14

1 wk

1 wk 1 wk
Chapter 8 1 wk 2 wks 1 wk
Chapter 8
Handle

1 wk 3 wks 1 wk 1 wk 1 wk 3 wks
b) In what week do you need to start the castings?
Casting Clamp
Bearing Castings need to start in week 4.
Housing Base
Shaft
Spring Bracket
Handle
Clamp
Casting

wk 4 wk 5 wk 6 wk 7 wk 8 wk 9 wk 10 15 16
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Chapter 8 Chapter 8
9. The demand for subassembly S is a) Construct a product b) Prepare a time-phased product structure.
100 units in week 7. Each unit of S structure. Identify all levels,
requires 1 unit of T and 2 units of parents, and components.
U. Each unit of T requires 1 unit of
V, 2 units of W, and 1 unit of X.
Finally, each unit of U requires 2
units of Y and 3 units of Z. One
firm manufactures all items. It
takes 2 weeks to make S, 1 week
to make T, 2 weeks to make U, 2
weeks to make V, 3 weeks to make
W, 1 week to make X, 2 weeks to
make Y, and 1 week to make Z. 17 18

Chapter 8
c) Construct a gross material requirements plan. Chapter 8
Week Lead Time
Item 1 2 3 4 5 6 7 8 (weeks)
Gross req 100 d) construct a net material requirements plan using the following
S 2
Order release 100 on-hand inventory.
Gross req 100
T 1
Order release 100 On-hand On-hand
U
Gross req 200
2 Item Item
Order release 200 inventory inventory
Gross req 100
V
Order release 100
2 S 20 W 30
W
Gross req 200
3
T 20 X 25
Order release 200
Gross req 100 U 40 Y 240
X 1
Order release 100 V 30 Z 40
Gross req 400
Y 2
Order release 400
Gross req 600
Z 1
Order release 600 19 20
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100
Lot-for-lot

2 20 0 S 20 20 20 20 20 20 20 20
80
80
80

80

Lot-for-lot
1 20 1 T 20 20 20 20 20 20
60
60
60

21 22

160 60
Lot-for-lot

Lot-for-lot

2 40 1 U 40 40 40 40 40 40 2 30 2 V 30 30 30 30 30
120 30
120 30
120 30

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120 60
Lot-for-lot

Lot-for-lot
3 30 2 W 30 30 30 30 30 1 25 2 X 25 25 25 25 25
90 35
90 35
90 35

25 26

240 360
Lot-for-lot

Lot-for-lot

2 240 2 Y 240 240 240 240 1 40 2 Z 40 40 40 40

320
320
320

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a) Lot-for-lot.
Chapter 8
10. Grace Greenberg, production planner for Science and Technology 35 40 10 25 10 45
Labs, in New Jersey, has the master production plan shown below:
1 0 0 0 0 0 0 0 0 0 0 0 0 0
Period (weeks) 1 2 3 4 5 6 7 8 9 10 11 12 35 40 10 25 10 25
Gross requirements 35 40 10 25 10 45 35 40 10 25 10 25
35 40 10 25 10 25
Lead time = 1 period; setup costs = $200; holding cost = $10 per ❶ ❷ ❸ ❹ ❺ ❻
week; stockout cost = $10 per week. Develop an ordering plan and
costs for Grace, using these techniques: Holding units = 0 unit

Setups : 6 × $200 = $1,200

Holding cost : 0 × $10 = $0
Total cost = Setup + Holding
29
Total cost = $1,200 + $0 = $1,200 30

b) EOQ. Annual demand = × 52 = 715 c) POQ. Annual demand = × 52 = 715

35 40 10 25 10 45 35 40 10 25 10 45

1 0 0 0 11 11 17 17 7 7 7 5 18 18 1 0 0 0 0 0 0 0 0 0 0 10 0 0
35 29 18 5 27 35 40 10 25 45
46 46 23 23 46 35 40 10 35 45
46 46 23 23 46 35 40 10 35 45
❶ ❷ ❸ ❹ ❺ ❶ ❷ ❸ ❹ ❺

𝑄∗ = = ≅ 23 Holding units = 137 units 19 𝑄∗ = = ≅ 23 Holding units = 10 units

Setups : 5 × $200 = $1,000 EOQ Setups : 5 × $200 = $1,000

Holding cost : 137 × $10 = $1,370
POQ interval =
Average weekly usage Holding cost : 10 × $10 = $100
Total cost = Setup + Holding Total cost = Setup + Holding
= ≅ 2 weeks Total cost = $1,000 + $100 = $1,100
Total cost = $1,000 + $1,370 = $2,370 31
⁄
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Chapter 9
d) Which plan has the lowest cost? 1. What is the overall objective of scheduling?
The objective of scheduling is to optimize the use of resources so
Periodic order quantity yields the lowest cost, $1,100, for this unique 12- that production objectives are met.
week period.

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Chapter 9 Chapter 9
2. List the four criteria for determining the effectiveness of a 3. Describe what is meant by “loading” work centers. What are the
scheduling decision. How do these criteria relate to the four criteria two ways work centers can be loaded? What are two techniques
for sequencing decisions? used in loading?
Four criteria for scheduling are: • Loading is the assignment of jobs to work processing centers.
• minimizing completion time • Work centers can be loaded by capacity or by assigning specific
• maximizing utilization jobs to specific work centers.
• minimizing work-in-process inventory, and • Gantt charts and the assignment method are loading
• minimizing customer waiting time. techniques.
There is a one-to-one correspondence between minimizing
completion time and minimizing flow time.

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Chapter 9 Chapter 9
4. What are the advantages and disadvantages of the shortest 5. When is Johnson’s rule best applied in job-shop scheduling?
processing time (SPT) rule? Johnson’s rule is used to sequence several jobs through two work
SPT minimizes the average flow time, average lateness, and average centers.
number of jobs in the system. It maximizes the number of jobs
completed at any point. The disadvantage is that long jobs are
pushed back in the schedule.

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1 2 3 4 min Employee
Job
1 2 3 4
Chapter 9 A
B
8
3
10
8
17
5
9
6
8
3 A 8 10 17 9
C 10 12 11 9 9 B 3 8 5 6
6. Four employees are to be assigned to four different jobs. The time D 6 13 9 7
C 10 12 11 9
6
per job per employee in minutes is given in the table below: D 6 13 9 7

Employee
Job
1 2 3 4 Row subtraction is done next Column subtraction is done next
A 8 10 17 9 1 2 3 4 1 2 3 4
B 3 8 5 6
A 0 2 9 1 A 0 0 7 1
C 10 12 11 9
B 0 5 2 3 B 0 3 0 3
D 6 13 9 7
C 1 3 2 0 C 1 1 0 0
Find the optimal assignment of employee to jobs to minimize the D 0 7 3 1 D 0 5 1 1
total completion time.
min 0 2 2 0
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1 2 3 4 1 2 3 4
A 0 0 7 1 A 0 0 7 1
B 0 3 0 3 B 0 3 0 3 Chapter 9
C 1 1 0 0 C 1 1 0 0
D 0 5 1 1 D 0 5 1 1 7. The marketing manager of a pharmaceutical company in Saudi
Arabia has four salesman that can serve four different sales regions.
Considering the capabilities of the salesman, their knowledge of the
Cover zeros with minimum lines different medical providers, and the nature of regions, the
Optimum solution achieved, assign task Optimal assignment: marketing manager has estimated that sales per month (in
Job A to employee 2 thousand Saudi Riyal [SAR]) for each salesman in each region would
Employee be as follows:
Job
1 2 3 4
Job B to employee 3
Employee
Job C to employee 4 Job
A 8 10 17 9 1 2 3 4
B 3 8 5 6 Job D to employee 1 A 32 24 35 26
C 10 12 11 9 Total completion time B 34 37 28 28
D 6 13 9 7 C 41 27 36 24
= 10 + 5 + 9 + 6 = 30 minutes.41
D 22 36 27 34 42

1 2 3 4 Employee 1 2 3 4 Cover zeros with minimum lines

Job
A 32 24 35 26 1 2 3 4 A 3 11 0 9 Optimum solution achieved, assign task
B 34 37 28 28 A 32 24 35 26 B 3 0 9 9
1 2 3 4
C 41 27 36 24
B 34 37 28 28 C 0 14 5 17
C 41 27 36 24 A 3 11 0 7
D 22 36 27 34 D 14 0 9 2
D 22 36 27 34 B 3 0 9 7
C 0 14 5 15
max 41 min 0 0 0 2
D 14 0 9 0
Subtract the maximum value with others Row subtraction is done next Column subtraction is done next
1 2 3 4 min 1 2 3 4 1 2 3 4
A 9 17 6 15 6 A 3 11 0 9 A 3 11 0 7 Employee
B 7 4 13 13 4
Job
B 3 0 9 9 B 3 0 9 7 1 2 3 4
C 0 14 5 17 0 C 0 14 5 17 C 0 14 5 15 A 32 24 35 26
D 19 5 14 7 5 D 14 0 9 2 D 14 0 9 0 B 34 37 28 28
C 41 27 36 24
min 0 0 0 2 D 22 36 27 34
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Employee
Job
1 2 3 4 Chapter 9
A 32 24 35 26 8. Lifang Wu owns an automated machine shop that makes precision
B 34 37 28 28 auto parts. He has just compiled an input–output report for the
C 41 27 36 24 grinding work center. Complete this report and analyze the results?
D 22 36 27 34
Period 1 2 3 4 Total
Optimal assignment: Planned input 80 80 100 100 360
Actual input 85 85 85 85 340
Job A to employee 3 Deviation +5 +5 -15 -15 -20
Planned output 90 90 90 90 360
Job B to employee 2 Actual output 85 85 80 80 330
Job C to employee 1 Deviation -5 -5 -10 -10 -30
Initial backlog: 30 30 30 35 40
Job D to employee 4
Total sales = 35 + 37 + 41 +34 =147,000 SAR. The completed input/output report shows that the Grinding work center
did not process all the jobs that were available during the four periods;
therefore, the desired output rate was not achieved. Also, rather than
45
reducing the backlog, the backlog increased to 40 units. 46

a) FCFS.
Chapter 9 Because all jobs arrived on day 275, and presumably in the order
given, the FCFS sequence is: A-B-C-D-E
9. The following jobs are waiting to be processed at the same machine
center. Jobs are logged as they arrive: Job Due Date Duration (days) Flow Start End Lateness
Job Due date Duration (Days) A 313 8 8 275 282 0
A 313 8 B 312 16 24 283 298 0
B 312 16
C 325 40
C 325 40 64 299 338 13
D 314 5 D 314 5 69 339 343 29
E 314 3 E 314 3 72 344 346 32
Totals: 72 237 74
In what sequence would the jobs be ranked according to the following
decision rules: (a) FCFS, (b) EDD, (c) SPT, and (d) LPT? All dates are
specified as manufacturing planning calendar days. Assume that all jobs
arrive on day 275. Which decision is best and why?
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Job Due date Duration (Days) Job Due date Duration (Days)
b) EDD. A 313 8 c) SPT. A 313 8
B 312 16 B 312 16
C 325 40 C 325 40
D 314 5 D 314 5
E 314 3 E 314 3
The EDD sequence is: B-A-D-E-C The SPT sequence is: E-D-A-B-C

Job Due Date Duration (days) Flow Start End Lateness Job Due Date Duration (days) Flow Start End Lateness
B 312 16 16 275 290 0 E 314 3 3 275 277 0
A 313 8 24 291 298 0 D 314 5 8 278 282 0
D 314 5 29 299 303 0 A 313 8 16 283 290 0
E 314 3 32 304 306 0 B 312 16 32 291 306 0
C 325 40 72 307 346 21 C 325 40 72 307 346 21
Totals: 72 173 21 Totals: 72 131 21

49 50

Job Due date Duration (Days)

d) LPT. A 313 8
Average Average Number of Jobs
B 312 16 Scheduling Rule Average Flow Time
C 325 40 Tardiness in System
D 314 5 FCFS 14.8 47.4 3.3
E 314 3 EDD 4.2 34.6 2.4
The LPT sequence is: C-B-A-D-E SPT 4.2 26.2 1.8
LPT 20.8 60.2 4.2
Job Due Date Duration (days) Flow Start End Lateness
= Best
C 325 40 40 275 314 0
B 312 16 56 315 330 18
SPT scores best on all criteria.
A 313 8 64 331 338 25
D 314 5 69 339 343 29
E 314 3 72 344 346 32
Totals: 72 301 104

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Job Printing (Hours) Binding (Hours)

T 15 3
Chapter 9 U 7 9
V 4 10
W 7 6
10. The following set of seven jobs is to be processed through two work X 10 9
centers at George Heinrich’s printing company. The sequence is first Y 4 5
printing, then binding. Processing time at each of the work centers Z 7 8
is shown in the following table:
a) What is the optimal sequence for these jobs to be scheduled?
Job Printing (Hours) Binding (Hours)
T 15 3
U 7 9 V Y U Z X W T
V 4 10
W 7 6
X 10 9
Y 4 5
Z 7 8
53 54
54

Job Printing (Hours) Binding (Hours)

T 15 3
U 7 9
V 4 10
W 7 6
X 10 9
Y 4 5 c) What is the total length of time of this optimal solution?
Z 7 8
total time of 57
V Y U Z X W T d) What is the idle time in the binding shop, given the optimal
b) Chart these jobs through the two work centers. solution?
Binding is idle from 0 to 4 and from 51 to 54 for a total of 7
hours

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e) How much would the binding machine’s idle time be cut by

splitting Job Z in half?
Chapter 9
We split Job Z into two halves and call them Z1 and Z2. The
11. Given the following demand for waiters and waitresses at S. Ghosh
times become 3.5 hours each on the Printer and 4 hours on the Bar and Grill, determine the minimum wait staff needed with a
Binder. policy of 2 consecutive days off.
Day
Mon Tue Wed Thu Fri Sat Sun
Wait staff needed 3 4 4 5 6 7 4

We see that the Binder idle time is now 3.5 hours plus 3.5
hours, for a total of 7 hours. So it is unchanged. T is not finished
any sooner, but other jobs are completed ½ hour earlier.

57 58
57

Monday Tuesday Wednesday Thursday Friday Saturday Sunday

Worker 1 3 4 4 5 6 7 4
Worker 2 3 3 3 4 5 6 4
Worker 3 3 3 2 3 4 5 3
Worker 4 2 3 2 2 3 4 2
Worker 5 1 2 2 2 2 3 1
Worker 6 1 1 1 1 1 2 1
Worker 7 1 0 0 0 0 1 1

59
59