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**Use the following information to answer the next three questions. Prepare a ma

ID: 382017 • Letter: #

Question

**Use the following information to answer the next three questions. Prepare a master production schedule for industrial pumps using the following information. urrently there are 145 units in inventory. Policy calls for a fixed order quantity of 250 units. Schedu le MPS production when the projected on-hand inventory would be negative without production. Week Week Gross requirements Scheduled receipts Projected on-hand Net requirements Planned order receipts 100 106 100 120 120 0 150 180 180 21 0 94 65 40 36. What is the ATP amount in week 5? A. 0 B. 43 C. 59 D. 70 37. What is the projected on-hand inventory in week 7? A. 39 B. 149 C. 189 D. 219 38. What is the MPS lot in week 3? A. 0 B. 250 C. 500 D. 750

Explanation / Answer

Projected on hand = Previous period Projected on hand + Scheduled receipts + Planned order receipts - Gross requirements

Net requirement =MAX(0, -1*Projected on hand)

36. Information about customer orders is not given in the question, without which ATP cannot be calculated.

37. Projected on-hand inventory in week 7 = 62.

38. MPS lot in week 3 = 0

Week 1 2 3 4 5 6 7 8 Gross requirements 100 100 120 120 150 150 180 180 Scheduled receipts 106 94 65 40 21 9 2 0 Projected on hand 145 151 145 90 10 131 240 62 132 Net requirements 0 0 0 0 0 0 0 0 Planned order receipts 250 250 250