Table 1 Order Policy: 80 units Lead Time: 1 week Item H Quantity on Hand 60 6 8
ID: 419727 • Letter: T
Question
Table 1 Order Policy: 80 units Lead Time: 1 week Item H Quantity on Hand 60 6 8 50 40 40 40 40 40 60 0 0 Customer orders Projected on Hand MPS quantit PS start 4. Use the information in partially completed Table 1. What is the projected on-hand inventory in week 5? A) 0 units B) 35 units C) 40 units D) 75 units 5. Use the information in partially completed Table 1. What is the MPS start quantity in week 2? A) 0 units B) 20 units C) 40 units D) 80 units 6. Use the information in partially completed Table 1. What is the available-to-promise (ATP) inventory in week 5? A) 0 units B) 35 units C) 53 units D) 80 unitsExplanation / Answer
Step-1: Find the projected on-hand inventory
E1 = E0 + Q1 - max. (F1, O1)
Where E1 = projected on hand at week-1
Q1 = MPS at week-1
F1 = Forecast at week-1
O1 = Orders at week-1
E0 = Projected on-hand inventory at the previous period
So, E1 = 60 + 0 - max. (50, 60) = 0. So, no need to update Q1.
Update the table:
E2 = E1 + Q2 - max. (F2, O2) = 0 + 0 - max(40, 20) = - 40
Note that the inventory has fallen below zero. So, we have to update the MPS (i.e. Q2). Since the lot size of MPS is 80, add Q2 = 80 and update E2 as E2 = E1 + Q2 - max. (F2, O2) = 0 + 80 - max(40, 20) = 40
Update the table:
E3 = E2 + Q3 - max. (F3, O3) = 40 + 0 - max(40, 15) = 0. So, no need to update Q3.
Update the table:
E4 = E3 + Q4 - max. (F4, O4) = 0 + 0 - max(40, 45) = - 45
Note that the inventory has fallen below zero. So, we have to update the MPS (i.e. Q4). Since the lot size of MPS is 80, add Q4 = 80 and update E4 as E4 = E3 + Q4 - max. (F4, O4) = 0 + 80 - max(40, 45) = 35.
Update the table:
Following the above procedure also for week-5, 6, 7, and 8, we will get the table updated as:
Step-2: Find the MPS start
For MPS start, just lag the MPS by 1 week lead time.
Step-3: Find the ATP
For the first period, ATP1 = E0 + Q1 - the sum of 'orders' before the next MPS occurs.
So, ATP1 = 60 + 0 - 60 = 0
For ATP of all the other periods, ATPt = Qt - the sum of 'orders' before the next MPS occurs.
So, ATP2 = Q2 - (20+15) = 80 - (20+15) = 45
ATP4 = Q4 - (45) = 80 - (45) = 35
ATP5 = Q5 - (10+12+5) = 80 - 27 = 53
ATP8 = Q8 - (0) = 80 - (0) = 80
Note that the entry for ATP will occur at the weeks of MPS only. So, the complete table will be:
4.
Answer - 75
5.
Answer - 0
6.
Answer - 53
0 1 2 3 4 5 6 7 8 Forecast (Ft) 50 40 40 40 40 40 35 35 Orders (Ot) 60 20 15 45 10 12 5 Projected on-hand (Et) 60 0 MPS quantity (Qt) 0Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.