Page 601 - Introduction to Business

CHAPTER 16 Managing Business Operations 575

EXHIBIT 16.11
Bill of Material for an Office Chair

Level 0 Office chair

Back Seat Chair
Level 1 Fasteners (8)
cushion cushion frame

Adjuster
Level 2 Base unit Wheels (6) Fasteners (3)
mechanism

Source: From Operations Management: Concepts in Manufacturing and Services, 2nd edition by Markland,
Vickery, and Davis. Copyright © 1998. Reprinted with permission of South-Western, a division of Thomson
Learning: www.thomsonrights.com. Fax 800 730-2215.

exactly 4 weeks each. Once the production rate strategy is broken down into weeks,
it is called the master production schedule. The master production schedule for master production schedule A schedule
office chairs is provided in Exhibit 16.12. where the production rate strategy is
broken down into weeks
In addition, suppose that there are currently on hand 22 back cushions, 52 seat
cushions, 50 chair frames, 970 fasteners, 4 adjuster mechanisms, 77 base units, and EXHIBIT 16.12
900 wheels. Lastly, assume that it takes one week to assemble the office chair and
the chair frame, and it takes two weeks to produce the other components. Master Production Schedule
for Office Chairs
Using MRP logic, the operations manager would estimate the requirements for
chair frames as in Exhibit 16.13. The number of chair frames requested comes
Production
directly from the master production schedule for office chairs; that is, if 25 office Week (chairs)
chairs will be produced during week 1, then 25 chair frames will be requested at the
beginning of week 1. In turn, given that there are currently 50 chair frames on hand, 1 25
no chair frames will be required until the beginning of week 3. And because it takes 2 25
one week to assemble chair frames, the 25 chair frames that are required at the 3 25
4 25
5 50
EXHIBIT 16.13 6 50

Requirements for Chair Frames and Wheels 7 50
8 50
Week
Chair
Frames 0 1 2 3 4 5 6 7 8
Requested 25 25 25 25 50 50 50 50
On hand 50 50 25 0 0 0 0 0 0
Required 0 0 25 25 50 50 50 50
Ordered 0 25 25 50 50 50 50 0

Week
Wheels 0 1 2 3 4 5 6 7 8
Requested 0 150 150 300 300 300 300 0
On hand 900 900 900 750 600 300 0 0 0
Required 0 0 0 0 0 300 300 0
Ordered 0 0 0 300 300 0 0 0

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