Question

Question 1 (2-Part) a) Complete the MPS record below for a single item. (Enter your responses as integers. A response of 0is equivalent to being not applicable.) Item: A Order Policy: 60 units Lead Time: 1 week on Hand: 35 20 28 28 30 35 18 Customer orders 17 17 MPS quantity MPS start b) Shown below is a partially completed MPS record for ball bearings. a. Develop the MPS for ball bearings. (Enter your responses as integers. A response of V' is equivalent to being not applicable.) Item: Ball bearings Order Policy: 500 units Lead Time: 1 week on Hand: 400 10 Forecast 550 300 400 300 400 200 350 500450 Customer orders300 350 250250 150 100 150 100 Projected on-hand MPS quantity 500口口口口口口口口 MPS start口口口口口口口口口 ATP) b. Four customer orders arrived in the following sequence: Quantity Week Desired 400 Assume that you commit to the orders in the sequence of arrival and cannot change the desired shipping dates or your MPS. Which orders should you accept? be accepted. Order number 1 Order number 2 should not Order number 3 epted. Order number 4should

Answer 1

Qa.

Projected on-hand after MPS = Previous week Inventory + MPS – Week Requirements

Where, week requirement = maximum (forecast, Orders)

POH = beginning inv + MPS – maximum (Forecast, customer orders)

Before placing MPS if the POH is negative , then place order of 60 units in that week. Update the POH again after placing MPS order.

(for week 2, before MPS the POH = 17 – max(20,17) = -3, thus the MPS of Q = 60 is placed and POH is updated)

		Order Policy =	60
		Beginning Inventory =	35
	Week 1	Week 2	Week 3	Week 4	Week 5	Week 6	Week 7	Week 8
Forecast	18	20	28	28	21	30	36	35
Orders	15	17	11	17	9	0	11	0
Projected On-Hand	35-max(18,15) = 17	17+60- max(20,17) = 57	29	1	40	10	34	59
Master Production Schedule	0	60	0	0	60	0	60	60
MPS Start	60	0	0	60	0	60	60	0

Since the Lead time is 1 week, the MPs will start 1 week prior to MPS placed.

Qb.a

Projected on-hand after MPS = Previous week Inventory + MPS – Week Requirements

Where, week requirement = maximum (forecast, Orders)

POH = beginning inv + MPS – maximum (Forecast, customer orders)

Before placing MPS if the POH is negative , then place order of 60 units in that week. Update the POH again after placing MPS order.

(for week 2, before MPS the POH = 17 – max(20,17) = -3, thus the MPS of Q = 60 is placed and POH is updated)

Available to promise (ATP)

For first week: ATP = Beg. Inv + MPS for first week - sum of orders for weeks till next MPS is scheduled

For remaining week: ATP = MPS for a week - sum of orders for weeks till next MPS is scheduled

(the week in which MPS is not scheduled, the ATP will remain same as previous weeks)

			Order Policy =	500
			Beginning Inventory =	400
		Week 1	Week 2	Week 3	Week 4	Week 5	Week 6	Week 7	Week 8	Week 9	Week 10
Forecast		550	300	350	400	300	400	200	350	500	450
Orders		300	350	250	250	200	100	150	100	150	100
Projected On-Hand		400+500-Max(550,300) = 350	0	150	250	450	50	350	0	0	50
Master Production Schedule		500	0	500	500	500	0	500	0	500	500
MPS Start	500	0	500	500	500	0	500	0	500
Available-to-Promise		400+500 -(300+350) = 250		500-(250) = 250	250	200		250		350	400

Qb.b

Order	Quantity	Week desired	ATP in desired week	Place order
1	500	4	250	Should not (since ATP < than demand)
2	500	5	200	Should not (since ATP < than demand)
3	400	1	250	Should not (since ATP < than demand)
4	400	7	250	Should not (since ATP < than demand)