MANF9472 PRODUCTION PLANNING AND CONTROL

ASSIGNMENT 1 – 2024

THE MANUFACTURING SITUATION

A company manufactures 4 products, Pilts, Relts, Stuns, and Super Stuns, which are assemblies of different
combinations of 5 basic components A, B, C, D, and E. The product structure (Bill of Materials) of each
product is as follows (Figure 1) with the number in brackets being the number of each component required per
product:

Pilt Relt Stun S.Stun

A(1) C(1) A(2) D(1) E(1) B(1) C(1) B(1) D(1) E(2)

Figure 1: The Bill of Material for the products.

The weekly demand for the products over the past 6 weeks has been given in Table 1 (wk-1 represents last
week, wk-2 the week before last etc).

Wk -6 Wk -5 Wk -4 Wk -3 Wk -2 Wk -1
Pilt 5 5 4 4 3 3
Relt 3 4 4 3 3 4
Stun 1 1 1 1 3 2
S.Stun 1 0 1 2 1 1

Products $/unit Production Manager’s

Monthly Forecast
Pilt 60 Pilt $1500
Relt 85 Relt $1200
Stun 100 Stun $1700
S.Stun 220 S.Stun $2000

Purpose of the Assignment:

The purpose of this assignment to analyse the above given company situation and come up with a forecast for
the given planning horizon. This will enable for you to contextualise the relevance of past and future demand
with respect given production resources. As a result of completion this assignment, you will be able to analyse
past demand data, identify suitable forecasting techniques and implement them to enable the company to meet
its financial objectives.

QUESTIONS:
(Please make appropriate assumptions where it is necessary after clearly stating them.)

1. Choose an appropriate forecasting technique to forecast demand for the next 6 weeks. Comment on the
forecasting error and explain how it can be improved. Make a comment on the forecasting techniques you
have chosen (12 points)
2. If the product manager’s monthly forecast is as above, make necessary adjustment to the forecast values
obtained in the question 1 and come up with a new demand forecast for the next 6 weeks (13 points)

3. How would the forecast error in question 1 will change according to the new forecast values, if any? (5)