Wine Accessories Inc (WAI) produces two models of corkscrews, the standard model

Question

Wine Accessories Inc (WAI) produces two models of corkscrews, the standard model and a delux mode. WAI follows a level aggregate plan, producing 20000 corkscrews per month, or 5000 corkscrews per week. The MPS is developed in weekly time periods. the forecasts for each model and the projected available are shown in the next two tables. The replenishment order quantity is 2000 units for the standard model and 1000 units for the delux model. Note that you can place multiple orders if a single order is insufficnet to cover the forecast (you can produce 4000 units of the standard model if necessary, or 2000 or 3000 units of the deluxe model) remember that total weekly production is limited to 5000 corkscrews. Develop an MPS for each of the products:

Standard Corkscrew

1

2

3

4

Forecast

3000

3500

5000

4000

Proj avail 2000

MPS

Deluxe corkscrew

1

2

3

4

Forecast

2000

1500

1000

3000

Proj Avail 2000

MPS

Standard Corkscrew

1

2

3

4

Forecast

3000

3500

5000

4000

Proj avail 2000

MPS

Deluxe corkscrew

1

2

3

4

Forecast

2000

1500

1000

3000

Proj Avail 2000

MPS

Explanation / Answer

Option 1 Standard Cockscrew Beginning Inventory = 2000 Lot Size 2000 units 1 2 3 4 Forecast 3000 3500 5000 4000 Projected Inventory 1000 1500 500 500 MPS (A) 2000 4000 4000 4000 Deluxe Cockscrew Beginning Inventory = 2000 Lot Size 1000 units 1 2 3 4 Forecast 2000 1500 1000 3000 Projected Inventory 3000 2500 2500 500 MPS (B) 3000 1000 1000 1000 Total Production (A+B) 5000 5000 5000 5000 Option 2 Standard Cockscrew Beginning Inventory = 2000 Lot Size 2000 units 1 2 3 4 Forecast 3000 3500 5000 4000 Projected Inventory 3000 3500 2500 500 MPS 4000 4000 4000 2000 Deluxe Cockscrew Beginning Inventory = 2000 Lot Size 1000 units 1 2 3 4 Forecast 2000 1500 1000 3000 Projected Inventory 1000 500 500 500 MPS 1000 1000 1000 3000 Total Production (A+B) 5000 5000 5000 5000 Projected Inventory = Beginning + MPS - Forecast

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