4. Assume that a valid master production schedule (MRP) record for item XYZ has

Question

4. Assume that a valid master production schedule (MRP) record for item XYZ has been created. The marketing department now decides to increase the forecast for item XYZ by 10 percent in each time period. What will happen to the available to promise (ATP) quantities as a result of this increase in forecast, assuming the quantities in the MPS row of the record do not change? a. the ATP will increase by 10 percent ?? b. the ATP will decrease by 10 percent c. the ATP will not change d. the change in ATP cannot be determined from the information provided

Explanation / Answer

ATP will not change since the formula used for calculation of ATP is

ATP = on hand + supply - demand

here the demand does not include forecast demand hence the change in forecast demand by 10% won't affect the ATP (Assuming other 2 parameters are same).

Hence, the ATP won't chance.

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