Final answer:
To determine the available-to-promise quantities, we calculate the projected on-hand inventory for each week and use a production lot size of 75 units. The ATP quantities are: Week 1 - 73 units, Week 2 - 73 units, Week 3 - 38 units, Week 4 - 26 units.
Step-by-step explanation:
To determine the available-to-promise (ATP) quantities for each period, we need to calculate the projected on-hand inventory for each week. We start with no beginning inventory, so in Week 1 the projected on-hand inventory is the forecast of 50 units minus the customer order of 52 units, which results in a negative balance of -2 units. As per the MPS rule, we need to schedule production to avoid negative projected on-hand inventory.
We can produce in lots of 75 units, so we scheduled a production of 75 units in Week 1. This production will result in a projected on-hand inventory of 73 units for Week 1.
In Week 2, the forecast is again 50 units, and we have a customer order of 35 units. With a projected on-hand inventory of 73 units from the previous week, we have a sufficient balance to meet the customer order and do not need to schedule additional production. Therefore, the available-to-promise (ATP) quantity for Week 2 is 73 units.
We repeat this process for Weeks 3 and 4, taking into account the customer orders and the projected on-hand inventory from the previous week. The ATP quantities for each period are as follows:
- Week 1: 73 units
- Week 2: 73 units
- Week 3: 38 units
- Week 4: 26 units