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ks People Window Help e Home I chegg.co xC Mail-iAnas_1@hotmai).(omar Midterm.pdf-G × uizjattempt.php?attempt-2292633&page-16; g 20181M417-740 20787 Week 8Midterm Exam Worldwide Can-Openers, Inc., makes a family of two hand-operated can openers, model A and model B. The production plan is based on weeks and will be a level production. There are four weeks in this month. The forecast demand for each week, opening inventory, and the inventory planned to reduce at the end of the week are given below, respectfully. The lot size for both models is 500 dozen. If no shortage is allowed, calculate the production plan and the MPS for each item. Production Plan Total Forecast Demand 3500 5000 4000 4500 Projected Available Balance 3000 Planned Production Planned to reduce the inventory at the end of month: 2000 dozen. Model A Week Forecast Demand Projected Available 3 Total 2000 35002000 2500 2000 Balance Planned to reduce the inventory at the end of month: depend on the plarn Model B

Explanation / Answer

As there is requirement of 2000 units of A in week 1, and availability is also 2000, minimum quantity that can be produced is 0, while maximum is anything that can leave the desired quantity at the end of week. The requirement of B is 1500 in week 1 and the quantity available is 1000, hence a minimum of 500 units need to be produced in week 1. Out of all options option a ( 4000 for A and 0 for B) does not fit the bill.

Option a is correct.

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