3. (1496) Vaxidene 13. Consider the following master schedule record for Vaxiden

Question

3. (1496) Vaxidene 13. Consider the following master schedule record for Vaxidene: On-hand inventory at end of December: 916 doses Month Week Forecast demand Orders booked Projucted on-hand nventon anuary"February 9 TO12 13 1,000 | 1,00011250- 1,2 1,500 | 1,500 | 1.75-1,750 1,095 950 1,100 63 1.125 1.095 1.243 1.208 Available-to-promise a. (") Complete the master schedule record. b. (**) Suppose a hospital in the Tucson area calls and says it is facing an epidemic of bacterial meningitis. It needs 2,000 doses as soon as possible. Assuming that Baxter can make no changes to the master production schedule quantities or orders booked, how quickly can it get the hospital the 2,000 doses? Be specific with regard to what quantities Baxter can ship and when. c. (**) Suppose the hospital says it needs the doses now, not in three weeks. What steps could Baxter Pharmaceuticals take to deal with this emergency? Who would Baxter need to talk to? (Hint: Consider the current booked orders and their sources.)

Explanation / Answer

a.

Explanation:

Projected on-hand inventory for week 6 = Initial Inventory (units) + MPS for week 6 – order booked for week 6                     [As the order booked is more than the forecast demand]

= 916 + 3250 – 1095 = 3071

Projected on-hand inventory for week 7 = Projected on-hand inventory for week 6 + MPS for week 7 – forecast demand for week 7                     [As the forecast demand is more than the order booked]

= 3071+ 0 – 1000 = 2071

Projected on-hand inventory for week 8 = Projected on-hand inventory for week 7 + MPS for week 8 – forecast demand for week 8                     [As the forecast demand is more than the order booked]

= 2071+ 0 – 1250 = 821

And so on……

Available to promise (ATP) in week 6 = On-hand quantity (initial) + MPS quantity in week 6 – booked order up to next MPS arrival

= 916 + 3250 – 1095 – 950 -1100 =1021

Available to promise (ATP) in week 9 = MPS quantity in week 9 - order booked (committed) up to next MPS arrival

= 4250 – 963 -1125 -1095 = 1067

Available to promise (ATP) in week 12 = MPS quantity in week 12 - order booked (committed) up to next MPS arrival

= 3500 – 1243 -1208 =1049

Note: ATP is only calculated for the first week and for weeks in which there is a MPS quantity

b. Without making any changes in plan; Baxter can manage 2,000 doses in week 9 only as available to promise quantity in week 6 is 1021 and in week 9 it is 1067. Together it is more than 2,000 so Baxter can promise 1021 dose in week 6 and remaining 979 doses in week 9.

c. If hospital needs that doses immediately, then Baxter have to talk the customer whose order is booked for week 6. If that customer is ready then Baxter can deliver 2,000 doses of quantity to hospital in week 6.

Quantity on hand = 916 doses January February Week 6 7 8 9 10 11 12 13 Forecast Demand 1000 1000 1250 1250 1500 1500 1750 1750 Booked orders 1095 950 1100 963 1125 1095 1243 1208 Projected on-hand inventory 916 3071 2071 821 3821 2321 821 2571 821 Master schedule (MPS) 3250 0 0 4250 0 0 3500 0 Available to promise (ATP) 1021 0 0 1067 0 0 1049 0

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