Question

complete the table and then answer the multiple-choice questions. Handwritten solutions, can be submitted as pdfs. Problem 1: MPS and ATP A partial table for end item B is provided below. Compute the MPS for item B and then the ATP values. Complete the table and then answer the multiple-choice questions: you need to complete the table to receive full credit (even if the answers to multiple-choice questions are correct). Item B Lead Time: 1 weeks Lot Size: 80 units Week Quantity on Hand s ss Forecast 50 40 40 40 40 40 35 35 Customer orders 160 20 15 45 10 12 Ibooked) Projected on Hand MPS quantity MPS start Available-to-promise What is the MPS start quantity in week 3? a. 80 units b. 60 units c. 30 units d. 20 units 2. What is the projected on-hand inventory in week 6? a. O units b. 15 units c. 35 units d. 63 units What is the available-to-promise (ATP) inventory in week 5? a. O units b. 35 units c. 45 units d. 53 units

Answer 1

Steps for MPS

step 1	IOH=	PIOH of last week
step 2	Requirement=	GR+SS-IOH	CO will be taken instead of GR when CO>GR
step 3	NR=	is equal to requirement (if requirement>0) OR 0 (if requirement is negative)
step 4	MPS=	more than or equal to NR in multiples of lot size
step 5	PIOH=	IOH+MPS-GR	CO will be taken instead of GR when CO>GR
step 6	MPS start=	MPS of preceding week
step 7 (After completing whole MPS)	ATP=	MPS+ IOH- sum of CO until next production (for first period)	MPS- sum of CO until next MPS

MPS

safety stock SS=	0
Q = lot size=	80
beginning inventory=	0
Period	1	2	3	4	5	6	7	8
Gross requirements GR	50	40	40	40	40	40	35	35
Customer orders CO	60	20	15	45	10	12	5	0
inventory on hand IOH	0	20	60	20	55	15	55	20
Requirement	60	20	-20	25	-15	25	-20	15
Net requirements NR	60	20	0	25	0	25	0	15
Master production schedule MPS	80	80	0	80	0	80	0	80
Projected on hand inventory POHI	20	60	20	55	15	55	20	65
MPS start	80	0	80	0	80	0	80	0
available to promise ATP (discrete)	20	45	0	25	0	63	0	80

a: MPS start of week 3: 80

b: on hand inventory of week 6= 15

c: ATP of week 5= 0 units.