The MPS planner at Synergy company uses MPS time-phased records for planning end
ID: 464988 • Letter: T
Question
The MPS planner at Synergy company uses MPS time-phased records for planning end-item production. The planner is currently working on a schedule for one of Synergy’s top-selling products. The planner uses a production lot size of 50 and a safety stock of 5 for the product. He currently has 25 units of the product on hand. The sales forecast for the next eight weeks is:
week
a. Prepare a time-phased MPS record showing the sales forecast and MPS for the product..
b. What are the inventory balances at the end of each week?
week
1 2 3 4 5 6 7 8 Forecast 30 40 40 30 45 30 40 45Explanation / Answer
Both A and B are answered below
We assume that planner start buying stock in the begining of every month
He orders 50 units plus 5 units saftey stock . so total inventory ordered in the begining of first week is 55 units .
He has 25 units in hand. Demand is 30 units by end of 1st week . So inventory at the begining of 1st week = 25 + 55= 80 units.
So stock at the end of 1st week is 80-30 = 50 units .
Now 50 units at the end of 1st week is opening balance of 2nd week. But planner is buying 55 units at start of 2nd week. So the total opening balance at the start of 2nd week is 50 + 55= 105 units. Sale is 40 units . So the balance qty at the end of 2nd week is 105-40 = 65 units . Similarly planner buys the stock at the begining 5 weeks to meet the the total demand of 8 weeks i.e. 300 units. The table above clearly shows the results.
Week SOH at beginning of 1st week 1 2 3 4 5 6 7 8 Total Forecast 30 40 40 30 45 30 40 45 300 MPS Required at the beginning of every month 25 50 50 50 50 50 275 Saftey stock 5 5 5 5 5 25 Total stock to be ordered in begining of week 55 55 55 55 55 0 0 0 275 Inventory balance at the end of each week 50 65 80 105 115 85 45 0Related Questions
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