The following information is for 4-5 1 2 3 4 5 6 7 8 9 10 Forecast Customer Orde

Question

The following information is for 4-5 1 2 3 4 5 6 7 8 9 10 Forecast Customer Orders (Booked) Projected On-Hand Inventory MPS Quantity MPS Start Available-to-Promise (ATP) A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2. 4. What is the projected on hand inventory at the end of period 2? A) 21 B) 1 C) 12 D) 20 E) impossible to say without more information

Explanation / Answer

4. B) 1.

Projected on hand at the end of period 2 = beginning inventory - MAX(forecast of period 1, customer orders of period 1) - MAX(forecast of period 2, customer orders of period 2) = 43 - MAX(22,20) - MAX(20,17) = 1

5. D) 4

Available To Promise (ATP) = beginning inventory - sum of customer orders in period 1 and 2 = 43 - (22+17) = 4

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