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Problem 21 Dan 22 Chapter 11

A master production schedule was prepared for an 8-week period given a weekly forecast of 50 units, beginning inventory of 10 units, and customer orders for weeks 1 through 4 of 52, 35, 20, and 12 units respectively. The schedule showed projected inventory levels for each week calculated based on previous inventory, requirements, MPS production runs of 70 units if projected inventory would be negative without production. An available-to-promise table was then created showing forecast, customer orders, projected inventory, MPS production, and uncommitted available inventory for each period.

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240 views

Problem 21 Dan 22 Chapter 11

A master production schedule was prepared for an 8-week period given a weekly forecast of 50 units, beginning inventory of 10 units, and customer orders for weeks 1 through 4 of 52, 35, 20, and 12 units respectively. The schedule showed projected inventory levels for each week calculated based on previous inventory, requirements, MPS production runs of 70 units if projected inventory would be negative without production. An available-to-promise table was then created showing forecast, customer orders, projected inventory, MPS production, and uncommitted available inventory for each period.

Uploaded by

Carren Whentrix Tolandang
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Problem 21

Prepare a master schedule like that shown in Figure 11.11 given this information: The forecast for each
week of an eight-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 as follows:

Week Customer Orders


1 52
2 35
3 20
4 12
Use a Production lot size of 70 units and beginning inventory 10 units.

Inventory from Projected


Week Previous week Requirements Net Inventory (70) MPS Inventory
1 10 52 -42 + 70 = 28
2 28 50 -22 + 70 = 48

3 48 50 -2 + 70 = 68

4 68 50 18 18

5 18 50 -32 + 70 = 38

6 38 50 -12 + 70 = 58

7 58 50 8 8

8 8 50 -42 + 70 = 28
PROBLEM 22
Determine the available-to-promise (ATP)
quantities for each period for Problem 21.

PERIOD

10 1 2 3 4 5 6 7 8
Forecast 50 50 50 50 50 50 50 50
Customer orders
52 35 20 12
(commited)
Projected on-hand
28 48 68 18 38 58 8 28
inventory
MPS 70 70 70 70 70 70

Available-to-
promise inventory 28 35 38 70 70 70
(uncommitted)

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