which order should we accepte which order should not be accepted? exciplanation
ID: 336234 • Letter: W
Question
which order should we accepte which order should not be accepted?
exciplanation please
Order Policy: 500 units Lead Time: 1 week Item: Ball bearings Week 10 on Hand: 400 Forecast Customer orders 300 350 (booked) Projected on-hand 3500 inventory MPS quantity MPS start 350 400 450 50 150 100 50 150 200 0 500 500 500 500 150 100 400 350 400 250 40 100 150 450 500 250 100 200 500 500 Available-to promise (ATP) 2500 350 400 250 inventory b. Four customer orders arrived in the following sequence: Order Quantity Week Desired Assume that you commit to the orders in the sequence of arrival and cannot change the desired shipping dates or your MPS. Which orders should you accept? Order number 1 sholdbe accepted. Order number 2 should be accepted. Order number 3 should be accepted. Order number 4 shouldbe accepted.Explanation / Answer
Step-1
Since the ATP for the first week is 250 which is less than the new order of 300, reject the order of week one.
Step-2
Since the order of the first week is not accepted, the cumulative ATP up to week 4 is 250+250+200=700 which is more than the new order of week 4 which is 500. So, accept it.
After accepting this the cumulative ATP of week 4 becomes 700 - 500 = 200
Step-3
The cumulative ATP up to week 5 now is 200 (from step-2) +250=450 which is more than the new order of week 5 which is 300. So, accept it.
After accepting this the cumulative ATP of week 5 becomes 450 - 300 = 150.
Step-4
The cumulative ATP up to week 7 now is 150 (from step-3) +350=500 which is more than the new order of week 5 which is 400. So, accept it.
After accepting this the cumulative ATP of week 5 becomes 500 - 400 = 100.
The tabular representation is as follows:
Period 1 2 3 4 5 6 7 8 9 10 ATP 250 250 200 250 350 350 400 ATP cumulative 250 250 500 200 150 150 100 100 450 850 New orders 300 500 300 400 Accept/ reject Reject Accept Accept AcceptRelated Questions
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