Question

A firm is planning their master production schedule for January and February. The forecast for January is 160 and the forecast for February is 200. Assume four weeks in each month. There are firm customer orders for the first five weeks. They are: 50, 42, 18, 6, and 2. The production lot size is 100 and beginning inventory is 75.

Develop the MPS and calculate the projected inventory and available to promise. Use those calculations to answer the following questions.

What is the master production schedule for period 1? If no production is scheduled, enter a zero

Answer 1

The master production schedule for period 1 would be zero as the existing inventory covers the order for that period.

Step-by-step explanation:

The student is inquiring about the master production schedule (MPS) for a firm's operations in the first period. Given the demand forecasts, firm customer orders, production lot size, and beginning inventory, we are to determine the MPS for period 1. For period 1, the firm has beginning inventory of 75 units and a firm customer order of 50 units. The production lot size is 100 units. Since the beginning inventory can satisfy the demand for the first period without additional production, the MPS for period 1 would be zero.

Additionally, to calculate the projected inventory after satisfying the order for period 1, we subtract the firm order from the beginning inventory, which gives us 75 - 50 = 25 units remaining. Since there is no production planned for period 1 and the remaining inventory is less than the production lot size, no inventory is available to be promised for future orders in this period.