Caso Atlantic Electric II: The Short Shipment Atlantic Electric has a metal-form

Question

Caso Atlantic Electric II: The Short Shipment Atlantic Electric has a metal-forming plant in San Antonio, Texas. Atlantic makes a wide variety of commercial and industrial electrical products, used to disconnect and protect wiring systems including computer systems. They have an MRP Il system in place and use the system to release work orders to manufacturing and recommended quantities to purchasing Two of the products manufactured at the San Antonio location are standard metal enclosures for electrical disconnects that are made from metal sheet, which comes in 2,000-pound rolls Previous work in standardizing their products has lead to the ability to make both final products (A and B) entirely from one raw material (X). There are some components (W, Z and Y) that go into the final products. These are manufactured in separate areas and are made from raw material (X). All information on the final products, components, and raw material are given in typical MRP format. All the information is stated in the attached item master files, where-used files, and master production schedules. You are the planner in charge of producing the As and Bs plus all the components and the raw material. (Note that part Y experiences some independent demand. It is a panel used in joining one or more enclosures together by the installer and there is a small continuous demand for this part.)

Explanation / Answer

The case indicates a scenario where MRP II is in place and the system is used to release work orders to manufacturing and recommend quantities to purchasing.

There are two final products A and B which can be manufactured with only one raw material X. Some other components that make final products are W, Y and Z that can also be produced through X, though separately. The main challenge before the in charge of manufacturing is the small but continuous independant demand of product Y.

The central problem is to meet the continuous small demand of Y without sacrificing on cost effectiveness at times when there are no demand for A and B and the raw material is available in 2000 lbs roll only.

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