Question

Question #3

Georgia Clay and Gravel was updating the MPS record for one of its products, Smell Fresh Cat Litter.

1. Complete the following MPS time-phased record.

Smell Fresh	On Hand	Week
		1	2	3	4	5	6	7	8
Forecast		20	20	20	30	30	30	30	30
Orders		5	3	2
Projected available balance	20	50	30	10	30	50	20	40	10
Available to promise
MPS		50			50	50		50

MPS Lot Size = 50

2. The following events occurred in week 1:

• Actual demand during week 1 was 10 units.
• Marketing forecasted that 50 units would be needed for week 9.
• An order for 12 in week 2 was accepted.
• An order for 8 in week 3 was accepted.
• An order for 25 in week 4 was accepted.
• The MPS in week 1 was produced as planned.

Update the record below after rolling through time.

Smell Fresh	On Hand	Week
		2	3	4	5	6	7	8	9
Forecast
Orders
Projected available balance	60 (Hint)
Available to promise
MPS

MPS Lot Size = 50

Answer 1

(a)

Smell Fresh	On Hand	Week
		1	2	3	4	5	6	7	8
Forecast		20	20	20	30	30	30	30	30
Orders		5	3	2	0	0	0	0	0
Projected Avl Bal.	20	50	30	10	30	50	20	40	10
Available to promise		60			50	50		50
MPS		50			50	50		50

Note:

ATP for the first period = Beginning Inventory + MPS of the first period - Sum of orders up to the next MPS.

ATP for other periods = MPS of that period - Sum of orders up to the next MPS.

(b)

Smell Fresh	On Hand
		2	3	4	5	6	7	8
Forecast		20	20	30	30	30	30	30
Orders		15	10	25	0	0	0	0
Projected Avl Bal.	60	40	20	40	60	30	50	20
Available to promise		35		25	50		50
MPS				50	50		50

B 2 Smell Fresh 20 30 30 Forecast Orders Projected Avl Bal. Available to promise MPS On Hand 2 5 8 20 30 30 30 =3+12 =2+8 =20+50-10 =C6+D8-MAX(D4:05) =D6+E8-MAX(E4:55) =E6+F8-MAX(F4:F5) =F6+G8-MAX(G4:55) =G6+H8-MAX(H4:H5) =H6+18-MAX(14:15) =16+J8-MAX(14:15) =C6+D8-SUM(D5:E5) =F8-F5 =G8-SUM(G5:45) =18-SUM(15:15) 50 50 8 50