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The forecast for each week of an four-week schedule is 50 units. The MPS rule is to schedule production if the projected on-hand inventory would be negative without it. Customer orders (committed) are follows: Week Customer Order 1 52 2 35 3 20 4 12 Use a production lot size of 75 units and no beginning inventory. Determine the available-to-promise (ATP) quantities for each period.

User Zarenor
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2 Answers

5 votes

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

User Matei Radu
by
4.6k points
1 vote

Answer:

Period 1

ATP= 23

Period 2

ATP= 40

Period 3

ATP= 43

Period 4

ATP= 0

Step-by-step explanation:

Attachments

The forecast for each week of an four-week schedule is 50 units. The MPS rule is to-example-1
The forecast for each week of an four-week schedule is 50 units. The MPS rule is to-example-2
User Mamboking
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