3. 10.00 points Problem 11-23 Prepare a schedule for the following situation: Th

Question

3. 10.00 points Problem 11-23 Prepare a schedule for the following situation: The forecast is 80 units for each of the first two periods and 60 units for each of the next three periods. The starting inventory is 20 units. The company uses a chase strategy for determining the production lot size, except there is an upper limit on the lot size of 70 units Also, the desired safety stock is 10 units. Note: The ATP quantities are based on maximum allowable production and do not include safety stock. Committed orders are as follows: (Negative amounts should be indicated by a minus sign. Leave no cells blank- be certain to enter "O" wherever required.) Period Customer Orders 82 2 60 40 20 4 Period Forecast Customer Orders 60 60 60 40 60 20 82 78 Projected On-Hand MPS ATP

Explanation / Answer

Answer:

Here formulas are listed below

Now given data

Opening inventory = 20

Safety stock =70

Production lot size(max) =70

Formula:

Week 0 1 2 3 4 5 Forecast 80 80 60 60 60 Customer orders (CO) 82 80 60 40 20 Projected on hand inventory 20 8 -2 8 10 10 MPS quantity 70 70 70 62 60 Available to promise(ATP) 8 0 10 22 40

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