Recently, Phil Harris, the production control manager at Brunswick, read an article on time-phased…

Recently, Phil Harris, the production control manager at Brunswick, read an article on time-phased requirements planning. He wascurlous about how this technique might work in scheduling Brunswick’s engine assembly operations and decided to prepare anexample to illustrate the use of time-phased requirements planning.
Phil’s first step was to prepare a master schedule for one of the engine types produced by Brunswick: the Model 1000 engine. Thisschedule indicates the number of units of the Model 1000 engine to be assembled each week during the last 12 weeks and is shownIn the figure given below. Next, Phil decided to simplify his requirements planning example by considering only two of the manycomponents needed to complete the assembly of the Model 1000 engine. These two components, the gear box and the Input shaft,are shown in the product structure dlagram. Phil noted that the gear box Is assembled by the Subassembly Department andsubsequently is sent to the maln engine assembly line. The input shaft is one of several component parts manufactured by Brunswickneeded to produce a gear box subassembly. Thus, levels 0,1 , and 2 are included in the product structure dlagram to indicate the threemanufacturing stages involved in producing an engine: the Engine Assembly Department, the Subassembly Department, and theMachine Shop.
The manufacturing lead times required to produce the gear box and input shaft components are also Indicated in the product structuredlagram. Note that two weeks are required to produce a batch of gear boxes and that all the gear boxes must be delivered to theassembly line parts stockroom before Monday morning of the week in which they are to be used. Likewise, it takes three weeks toproduce a lot of input shafts, and all the shafts needed for the production of gear boxes in a given week must be delivered to theSubassembly Department stockroom before Monday morning of that week. Gear Box RequirementsInput Shaft Requirementsc. What are the savings with the new schedule? Assume inventory is valued at the end of each week.Cost of the schedule from part (a) Cost of the schedule using least-total-cost lot sizingSavings with the new schedule