Question
Prepare a master production schedule for industrial pumps in the manner of the following table. Use the MPS rule to "schedule production when the projected on-hand inventory would be less than 10 without production." Suppose that a production lot size of 70 pumps is used. (Leave no cells blank - be certain to enter "0" wherever required.) June July Initial Inventory = 60 1 2 3 4 5 6 7 8 Forecast 30 30 30 30 40 40 40 40 Customer orders (committed) 31 20 10 4 2 Projected on-hand inventory MPS ATP
Explanation / Answer
Beginning Inventory 60 MPS Table June July Period 1 2 3 4 1 2 3 4 Forecast demand 30 30 30 30 40 40 40 40 Customer orders booked 33 20 10 4 2 0 0 0 Projected on-hand inventory 27 67 37 77 37 67 27 57 Master schedule (Note1) 0 70 0 70 0 70 0 70 Available to promise 7 56 0 68 0 70 0 70 Projected on-hand inventory For Period 1 = Beginning Inventory + MPS for that period - Max of Forecast or Customer orders For Subsequent periods = Projected on-hand inventory + MPS for that period - Max of Forecast or Customer orders Available to promise For Period 1 = Beginning Inventory + MPS for that period - Customer Order for Current and Next periods For Subsequent periods = If MPS>0, MPS for that period - Customer Order for subsequent two periods For MPS = 0, ATP = 0 MPS Calculation (note 1) Projected On hand before MPS June 1 60 - Max(30,33) = 27 Hence, MPS = 0, as Projected > 10 2 27 - Max(30,20) = -3 Hence, MPS = 70, as Projected < 10 3 67 - Max(30,10) = 37 Hence, MPS = 0, as Projected > 10 4 37 - Max (30,4) = 7 Hence, MPS = 70, as Projected < 10 July 1 77 - Max(40,2) = 37 Hence, MPS = 0, as Projected > 10 2 37 - Max(40,0) = -3 Hence, MPS = 70, as Projected < 10 3 67 - Max(40,0) = 27 Hence, MPS = 0, as Projected > 10 4 27 - Max(40,0) = -13 Hence, MPS = 70, as Projected < 10