Question

Problem 8

1) Complete the Table below.

2) Based on the completed table what is the largest additional order that could be accepted for delivery for the end of week 8?

please show your work so I can understand how to do it

1 P301 - Problem 8 21) Complete the Table below. 32) Based on the completed table what is the largest additional order that could be accepted for delivery for the end of week 8? ULUI Order Policy = 450 Beginning Inventory = 425 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 460 400 445 420 450 465 480 500 350 425 400 450 410 325 250 175 B Forecast Orders Lo Projected On-Hand L1 Master Production Schedule L2 Available-to-Promise

Answer 1

Answer:

1)
order policy= 450

Beginning inventory = 425

	Week 1	week 2	week 3	week 4	week 5	week 6	week 7	week 8
Forecast	460	400	445	420	450	465	480	500
Orders	350	425	400	450	410	325	250	175
Projected On-Hand	75	125	130	160	160	145	115	65
Master production schedule	0	450	450	450	450	450	450	450
Available-to-promise	75	25	50	0	40	125	200	275

2) Largest additional order that could be accepted for delivery for the end of week 8 = 390 (Available-to-promise + week 8 beginning inventory I.e week 7 Projected On-Hand)

Explanation:

1) Projected On-Hand = on hand inventory at the end of last week + Master production schedule quantity due at the start of this week - Projected requirements this week

for week 1 = 425 + 0 - 350 = 75

for week 2 = 75 + 450 - 400 = 125

2) Master production schedule :

Determine the time and quantity of master production schedule in order to maintain a non negative Projected On-Hand inventory.

for week 1 projected requirement is 350 (Orders) whereas the beginning inventory is 425 which is a non negative Projected On-Hand

for week 2 projected requirement is 400 (forecast) whereas Projected On-Hand is 75, so master production schedule is 450 units which is order policy , once the master production schedule quantity is scheduled the Projected On-Hand inventory comes to = Projected On-Hand of week 1 (75) + Master production schedule (450) - projected requirement of week 2 (400 ( forecast)) = 125.

3) Available-to-promise :

It is the difference between the customers orders already booked till the next master production schedule and the quantity that operation is planning to produce ( master production schedule).

for week1 Available-to-promise = Projected On-Hand (425) + Master production schedule (0) - Projected requirement (350) = 75

for week 2 Available-to-promise = Master production schedule (450) - Projected requirement (425) = 25

Thank you.