Question
Problem 11-21 Prepare a master schedule given this information: The forecast for each week of an eight-week schedule is 50 units. The MPS rule is to schedule production if the projected on-hand inventory would be negative without it. Customer orders (committed) are follows: Week Customer Order 1 52 2 35 3 20 4 12 Use a production lot size of 73 units and no beginning inventory. (Leave no cells blank - be certain to enter "0" wherever required.) June July 1 2 3 4 5 6 7 8 Forecast 50 50 50 50 50 50 50 50 Customer Orders 52 35 20 12 0 0 0 0 Projected on-hand inventory MPS ATP
Explanation / Answer
Production Lot Size 73 Beginning Inventory 0 MPS Table June July Period 1 2 3 4 5 6 7 8 Forecast demand 50 50 50 50 50 50 50 50 Customer orders booked 52 35 20 12 0 0 0 0 Projected on-hand inventory 21 44 67 17 40 63 13 36 Master schedule (Note1) 73 73 73 0 73 73 0 73 Available to promise -14 41 61 0 73 73 0 73 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 0 - Max(50,52) = -52 Hence, MPS = 73, as Projected < 0 2 21 - Max(50,35) = -29 Hence, MPS = 73, as Projected < 0 3 44 - Max(50,20) = -6 Hence, MPS = 73, as Projected < 0 4 67 - Max (50,12) = 17 Hence, MPS = 0, as Projected > 0 July 5 17 - Max (50,0) = -33 Hence, MPS = 73, as Projected < 0 6 40 - Max (50,0) = -10 Hence, MPS = 73, as Projected < 0 7 63 - Max (50,12) = 13 Hence, MPS = 0, as Projected > 0 8 13 - Max (50,0) = -37 Hence, MPS = 73, as Projected < 0