Question

Spring 2018 Name: LD. #: 1. Using the information in the following table, prepare a prospective MPS and calculate the available-to- promise (ATP) quantities on the table below. The order policy is to produce in lots of 100. Show all your calculations on the paper to receive full or partial credits. Week Quantity on hand: 40 1 Forecast 40|40|40|40|50 50 | 50 | 50 Customer orders (booked)20 95 40 45 15 75 20 10 Projected on-hand Inventory MPS quantity Available-to-promise (ATP) Based on the ATP, should a new customer order of 50 units, to be delivered in week 4, be accepted? If not, which week is the earliest that this order can be accepted?
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Answer 1

Week	1	2	3	4	5	6	7	8
Forecast	40	40	40	40	50	50	50	50
Orders	20	95	40	45	15	75	20	10
Inv on hand	0	5	65	20	70	95	45	95
MPS Qty	0	100	100	0	100	100	0	100
ATP	0	5	15	0	85	5	0	90

In week 1 there will be no production as the requirement of 40 units will be met through invntory on hand.

In week 2, 100 units will be produced, out of which 95 will be utilised for order and 5 on hand. ATP will be 5 units, which can be provided to a customer if needed.

In week 3, again 100 units will be produced leaving 65 on hand, but available to promise will be (100- 40-45) because in addition to meeting requirements of week 3, the week 4 requirements will also be met through this production cycle only as week 4 has no production schedule.

In the same way, data for week 5, 6, 7 and 8 can also be calculated as in table above.

New customer's order of 50 units can not be fulfilled in week4, as it has no ATP. The order can only be fulfilled in week 5, where 85 units are available.