9. Given the following information shown below, what is the projected on-hand in
ID: 364953 • Letter: 9
Question
9. Given the following information shown below, what is the projected on-hand inventory at the end of week 4? The MPS rule is to schedule production if the projected on-hand inventory at the end of a week would be negative without it. Use a fixed production lot-size of 75 units. Note, there is no beginning inventory for week one and you have been provided the demand forecasts and currently booked (committed) customer orders as shown below. Week Forecast Customer Orders Projected On-Hand (0) MPS 50 50 50 50 52 35 20 12 a. 23 units b. 25 units c. 48 units d. 50 units e. 75 units f.some other valueExplanation / Answer
Question 9 -
Week 1 - Initial stock is 0 and the confirmed order is 52 units. Since there is no inventory, 75 units would be produced. 52 units will be left and inventory at the end of week 1 would be 23 units.
Week 2 - Initial stock is 23 units and the forecast is 50 units. Since inventory is less, 75 units would be produced. Total projected inventory after week 2 is 23+75-50 = 48 units.
Week 3 - Initial stock is 48 units and the forecast is 50 units. Since inventory is less, 75 units would be produced. Total projected inventory after week 3 is 48+75-50 = 73 units.
Week 4 - Initial stock is 73 units and the forecast is 50 units. Since inventory is sufficient, 0 units would be produced. Total projected inventory after week 4 is 73-50 = 23 units.
Hence answer is (a) 23 units
Question 10 - The ATP is the difference between the customer orders and the inventory till operations is planning to manufacture the next time. Table for MPS and projected on hand inventory is given below.
Week 1 - Projected on hand = 30+100-42 = 88
Week 2 - Projected on hand = 88-40 = 48
Week 3 - Projected on hand = 48-32 = 16
Week 4 - Projected on hand = 16+100-30 = 86
After week 1 - Inventory is 88 units. The production will happen in week 4. In week 2 and 3 total customer orders are 39+32 = 71
Therefore ATS is 88-71 = 17 units. Answer is (d)
Week 1 2 3 4 Forecast 40 40 30 30 Customer Orders 42 39 32 15 Projected on hand (30) 88 48 16 86 MPS 100 100Related Questions
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