Discuss Inventory Management

Complete the \”Analytics Exercise: An MRP Explosion – Brunswick Motors,\” at the end of Chapter 21 in the textbook. Answer Questions 1-3.APA format is not required, but solid academic writing is expected.You are not required to submit this assignment to Turnitin.  A n a l y t i c s E x e r c i s e : A n M R P E x p l o s i o n —B r u n s w i c k M o t o r sRecently, Phil Harris, the production control manager atBrunswick, read an article on time-phased requirementsplanning. He was curious about how this technique mightwork in scheduling Brunswick’s engine assembly operationsand decided to prepare an example to illustrate theuse of time-phased requirements planning.Phil’s fi rst step was to prepare a master schedule for oneof the engine types produced by Brunswick: the Model1000 engine. This schedule indicates the number of units ofthe Model 1000 engine to be assembled each week duringthe last 12 weeks and is shown below. Next, Phil decided tosimplify his requirements planning example by consideringonly two of the many components that are needed to completethe assembly of the Model 1000 engine. These twocomponents, the gear box and the input shaft, are shownin the product structure diagram below. Phil noted that thegear box is assembled by the Subassembly Department andsubsequently is sent to the main engine assembly line. Theinput shaft is one of several component parts manufacturedby Brunswick that are needed to produce a gear box subassembly.Thus, levels 0, 1, and 2 are included in the productstructure diagram to indicate the three manufacturingstages that are involved in producing an engine: the EngineAssembly Department, the Subassembly Department, andthe Machine Shop.The manufacturing lead times required to produce the gearbox and input shaft components are also indicated in the productstructure diagram. Note that two weeks are required to producea batch of gear boxes and that all the gear boxes must bedelivered to the assembly line parts stockroom before Mondaymorning of the week in which they are to be used. Likewise,it takes three weeks to produce a lot of input shafts, and all theshafts that are needed for the production of gear boxes in agiven week must be delivered to the Sub assembly Departmentstockroom before Monday morning of that week.In preparing the MRP example Phil planned to use theworksheets shown on the next page and to make the followingassumptions:1. Seventeen gear boxes are on hand at the beginning ofWeek 1, and fi ve gear boxes are currently on order tobe delivered at the start of Week 2.2. Forty input shafts are on hand at the start of Week 1,and 22 are scheduled for delivery at the beginning ofWeek 2.Q u e s t i o n s1 Initially, assume that Phil wants to minimize his inventoryrequirements. Assume that each order will beonly for what is required for a single period. Using thefollowing forms, calculate the net requirements andplanned order releases for the gear boxes and inputshafts. Assume that lot sizing is done using lot-for-lot(L4L). 2 Phil would like to consider the costs that his accountantsare currently using for inventory carrying andsetup for the gear boxes and input shafts. These costs are as follows:  Given the cost structure, evaluate the cost of theschedule from question 1. Assume inventory is valuedat the end of each week. 3 Find a better schedule by reducing the number oforders and carrying some inventory. What are the savings with this new schedule? SEE ATTACHED FILE FOR CHART