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Tabard Industries forecasted the following demand for one of its most profitable

ID: 423220 • Letter: T

Question

Tabard Industries forecasted the following demand for one of its most profitable products for the next 8 weeks: 100, 100, 100, 80, 80, 80, 60, and 60 units. The booked customer crders for this product, starting in week 1 are: 110, 70, 50, 40, 30, 20, 0, and 0 units. The current on-hand inventory is 250 units, the order quantity is 250 units, and the lead tme is one week a. Develop a MPS for this product (Enter your responses as whole numbers. A response of "0* is equivalent to being not applicable.) units Lead Time: 1 week on Hand: 250 100 100 Customer orders (booked) Projected on-hand 4040 1 130200140 80 110 70 30 MPS quantity MPS start b. The marketing department revised its forecast. Starting with week 1, the new forecasts are: 100, 100, 100, 120, 120, 120, 90, and 90 units. Assurning that the prospective MPS you developed in part (a) does not change, prepare a revised MPS record. Comment on the situation that Tabard now faces Recalculate the projected on-hand inventory for each week. (Enter your responses as whole numbers. A response of "O-is equivalent to being not applicable.) Lead Time: 1 week on Hand: 250 Customer orders (booked) Projected on-hand MPS quantuty MPS start 110 70 50 40 30 250 250 250

Explanation / Answer

a.

Period

1

2

3

4

5

6

7

8

Forecasted Sales

100

100

100

80

80

80

60

60

Customer Orders

110

70

50

40

30

20

0

0

Projected on Hand (250)

150

50

200

120

40

210

150

90

Master Production Schedule

0

0

250

0

0

250

0

0

MPS Start

0

250

0

0

250

0

0

0

Projected on Hand= Inventory on hand-Forecast+MPS

b.  

Period

1

2

3

4

5

6

7

8

Forecasted Sales

100

100

100

120

120

120

90

90

Customer Orders

110

70

50

40

30

20

0

0

Projected on Hand (250)

150

50

200

80

-40

90

0

-90

Master Production Schedule

0

0

250

0

0

250

0

0

MPS Start

0

250

0

0

250

0

0

0

In Week 5 and Week 8, you won't have material left to cater to customer demand while you will have excess inventory in Week 3 and week 6

Period

1

2

3

4

5

6

7

8

Forecasted Sales

100

100

100

80

80

80

60

60

Customer Orders

110

70

50

40

30

20

0

0

Projected on Hand (250)

150

50

200

120

40

210

150

90

Master Production Schedule

0

0

250

0

0

250

0

0

MPS Start

0

250

0

0

250

0

0

0