Complete the Table below. Based on the information provided what is the largest

Question

Complete the Table below. Based on the information provided what is the largest order you could currently accept for delivery by the end of Week 8? Order Policy = 900 Beginning Inventory = 650 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Forecast 610 625 560 575 575 560 560 550 Orders 500 550 200 495 300 325 250 175 Projected On-Hand Master Production Schedule Available-to-Promise Complete the Table below. Based on the information provided what is the largest order you could currently accept for delivery by the end of Week 8? Order Policy = 900 Beginning Inventory = 650 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Forecast 610 625 560 575 575 560 560 550 Orders 500 550 200 495 300 325 250 175 Projected On-Hand Master Production Schedule Available-to-Promise

Explanation / Answer

Answer:

The acceptable order at the end of week 8 shall be calculated by ascertaining the available to promise level of the inventory;

Available to Promise (ATP) Level = Inventory on hand + Supply - Demand

Note: In absence of any information about lead time we assume it as 1 week.

In the given case, as on the end of week 8;

Available To Promise Inventory = 535

Week1 Week2 Week3 Week4 Week5 Week6 Week7 Week8 Forecast 610 625 560 575 575 560 560 550 Customer Orders 500 550 200 495 300 325 250 175 Projected on hand 650-610 = 40 40+900-625 = 315 655 980 405 745 1085 535 Master Production Schedule 900 900 900 0 900 900 0 900 ATP 40 315 655 980 405 745 1085 535

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