I need this completed with explanations. Not just the chart filled out. 8. A. Co

Question

I need this completed with explanations. Not just the chart filled out.

8. A. Complete the following MPS for Product MPS Record for Product X Demand time fence: 2 weeks On Hand: 20 Units Period 10 10 1010 10 1015 15 Forecast Customer Orders Proj. Avail Bal. Avail. to Promise MPS 3 29 20 B. Four additional customers arrive Order 1: 20 units in Period 1 Order 2: 10 units in Period 2 Order 3: 35 units in Period 5 Order 4: 10 units in Period 6 Without changing the MPS quantities, which orders if any, can be filled and when can they be filled?

Explanation / Answer

Demand time fence is 2 weeks, which means first two weeks forecast need to be ignored. Therefore, in MPS table, remove forecast of first 2 weeks. Only actual customer orders are planned.

Projected on hand inventory is calculated as previous week on hand inventory + MPS - MAX(Forecast, Orders)

20 units are on hand at the beginning. MPS occurs when Projected on hand inventory becomes 0 or less. This occurs in week 4. So MPS occurs in week 4.

Thereafter Projected on hand becomes negative in week 7 and hence MPS occurs in week 7.

Available To Promise in week 1 = Opening inventory + MPS (if any) - Sum of customer orders till next MPS occurs. Therefore ATP in week 1 = 20 + 0 - (5+2+3+9) = 1

Next MPS is in week 4. So ATP in week 4 = MPS - Sum of customer orders till next MPS occurs. (note that opening inventory is considered only in the first week for ATP calculation. It is not considered in subsequent weeks)

ATP in week 4 = 30 - 9 = 21

Next MPS is in week 7, but there are no customer orders. So ATP in weekm7 = 30 - 0 = 30

Resulting MPS table follows

Only order 4 can be accepted in period 6.

MPS Table Period 1 2 3 4 5 6 7 8 Forecast demand 10 10 10 10 15 15 Customer orders booked 5 3 2 9 Projected on-hand inventory 20 15 12 2 22 12 2 17 2 Master schedule 30 30 Available to promise 1 0 0 21 0 0 30 0

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