Question

Part II. TECHHICHI PPUDICMS (SHOW ALL CHICHI WUIS UIT Law Problem 7. (10%) Using the information in the following table, prepare a prospective MPS and calculate the available-to-promise quantities. The order policy is to produce in lots of 300. 1 100 40 2 100 190 3 100 220 Week 4 5 100 120 70 60 6 120 110 7 120 40 8 120 Quantity on hand: 100 Forecast Customer orders (CO) Projected on-hand inventory MPS quantity Available-to-promise (ATP) Assume that prospective new customer orders arrive in the following sequence, independent of one another. Order Week Due Quantity 70 60 Which of the orders should be accepted? a) all of the orders b) orders 1, 2, and 3 only c) orders 1 and 2 only d) orders 1, 2, and 4 only e) none of the above On-hand inventory = previous on-hand inventory - Max (forecast, customer order) ATP for week 1=current OH + MPS in first week - cumulative CO occurring before the next MPS receipt ATP for subsequent weeks = MPS of the week - cumulative CO occurring before the next MPS receipt.

Answer 1

14 IT 1 2 Period 3 Demand 4 Customer Orders 5 Requirement 6 Opening Inventory 7 Net Inventory before production 8 Master Production Schedule -90 300 Projected On-Hand Inventory (POHI) at the end of period 90 30 60 110 110 190 100 270 900 210 300 10 Available To Promise 11

Formula

D н 120 40 70 60 40 2 Period 3 Demand 4 Customer Orders 5 Requirement 6 Opening Inventory 7 Net Inventory before production 8 Master Production Schedule 100 100 100 190 220 =MAX(B3:34) =MAX(C3:04) (=MAX(D3:04) 100 =B9 =C9 =B6-B5 =C6-C5 =D6-D5 =IF(B7<0,300,0) =IF(C7<0,300,0) =IF(D7<0,300,0) 100 120 120 110 =MAX(E3:E4) =MAX(F3:F4) =MAX(G3:44) =D9 =E9 =F9 =E6-E5 |=F6-F5 =G6-G5 =IF(E7<0,300,0) =IF(F7<0,300,0) =IF(G7<0,300,0) =MAX(H3:H4) =MAX(13:14) =G9 =H9 =H6-H5 =16-15 =IF(H7<0,300,0) =IF(17<0,300,0) Projected On-Hand Inventory (POHI) at the end of period 9 =E6+E8-E5 =H6+H8-15 =B6+B8-05 =B6-B4 =C6+C8-C5 =C8-04 =D6+D8-D5 =D8-D4-E4 =F6+F8-F5 =F8-F4-G4-H4 =G6+G8-65 =IF(G8-64-H4<0,0, G8-G4-H4) =16+18-15 300 10 Available To Promise 11 12

Order 1 which is 70 quantity in week 6 can be accepted since We can fulfill that from 90 quantity of ATP generated in period 5

Order 2 which is 60 quantity in week 1 can be accepted as it can be accommodated from 60 ATP of week 1

order 3 which is 80 quantity in week 3 also can be accepted as it can be accepted by taking 170 quantity from 110 ATP quantity generated in week 2 and 10 quantity from ATP generated in week 3

Order 4 50 quantity in week 7 also can be accepted by taking remaining 20 ATP from Week 6 and 30 quantity from week 2

So correct answer is a) all of the orders

ATP schedule changed after the orders as below

Period	1	2	3	4	5	6	7	8
Demand	100	100	100	100	120	120	120	120
Customer Orders	100	190	300	70	60	180	90	0
Requirement	100	190	300	100	120	180	120	120
Opening Inventory	100	0	110	110	10	190	10	190
Net Inventory before production	0	-190	-190	10	-110	10	-110	70
Master Production Schedule	0	300	300	0	300	0	300	0
Projected On-Hand Inventory (POHI) at the end of period	0	110	110	10	190	10	190	70
Available To Promise	0	10	0	0	0	0		300