Question

Problem 1

Week		1	2	3	4	5	6	7	8	9	10
Forecast		65	70	60	65	70	65	65	60	55	40
Customer Orders		20	25	10	40	10	30	5	10	0	5
Available	100												Average PAB (w/out starting)
ATP													Total ATP
MPS													Total MPS
On hand = 100			Lot size = 100 multiples				Safety Stock = 25

1. Complete the MPS time-phased record above with the information as given

Answer 1

Week Forecast Customer Orders Available ATP MPS On hand100 12345678910 65 70065 70 65 6055 40 20 25 04010 30 51005 100 35 61040 70 105 0802585 95 100 65 545 600 80 7550 90 65 100 100 90 100 100 100 Lot size 100 multiples Safety Stock 25

Steps

1. Compute the Available balance row first using the formula

Available balance = Available balance of previous period + MPS - Max.(Forecast, Orders)

2. Insert MPS = 100 or multiples wherever available balance is less than the safety stock.

3. Compute the ATP of the first period as ATP₁ = On-hand + MPS₁ - Order up to the next MPS = 100 + 0 - 20 = 80

4. Compute the ATP of the other periods as ATP_t = MPS_t - Order up to the next MPS