A gear manufacturer schedules production of one of the gears in batches of 200 u

Question

A gear manufacturer schedules production of one of the gears in batches of 200 units whenever the projected ending inventory balance in a month falls below 30 units. It takes one month to make a batch of 200 units. The company currently has 90 units on hand. The sales forecast for the next six months is:

a) Prepare a time-phased MPS record showing the sales forecast and MPS for the toy product.

b) What are the inventory balances at the end of each month?

c) During the first month, no units were sold. The revised forecast is as follows:

How does the MPS change?

month 1 2 3 4 5 6 forecast 170 90 90 215 85 70

Explanation / Answer

Solution :

Production Batch = 200 Units

Inventory in Hand = 90 units

a ) Time phased MPS

b)

Inventroy Balances at each month

c)

Revised Forcasts

Time Phased MPS month 1 2 3 4 5 6 7 forecast 170 90 90 215 85 70 0 Inventory in Hand 90 120 230 140 125 240 170 Production in a Batch of 200 200 200 0 200 200 0 0

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