Prepare a master schedule given this information: It is now the end of week 1; c

Question

Prepare a master schedule given this information: It is now the end of week 1; customer orders are 25 for week 2, 16 for week 3, 11 for week 4, 8 for week 5, and 3 for week 6. Use the MPS rule of ordering production when projected on-hand inventory would be negative without production. Suppose that a production lot size of 70 pumps is used.

June

July

June

July

  64       1    2     3      4     5     6   7   8   Forecast 30      30      30      30      40      40      40      40        Customer orders (committed) 33      25      16      11      8      3        Projected on-hand inventory                                                   MPS                                                   ATP                                                

Explanation / Answer

MPS and Projected on -hand inventory we can calculate as per following table.

Here, ATP = MPS - Customer Orders (committed) up to next MPS schedule

For Expamle, ATP for week 1 = MPS for week 1 - (customer order of week 1 + customer order for week 2)

As next MPS is scheduled in week 3

weeks inventory from previous week Requirement Net inventory before MPS MPS (70) Projected On hand Inventory 1 0 33 -33 70 37 2 37 30 7 7 3 7 30 -23 70 47 4 47 30 17 17 5 17 40 -23 70 47 6 47 40 7 7 7 7 40 -33 70 37 8 37 40 -3 70 67

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