Question

Use the information below to work the problems in this section.

• Assume every month has four weeks
• January demand is 200
• February demand is 300
• Beginning inventory is 54
• Lot size is 150
• Firm planned orders for the first six weeks are: 50, 38, 22, 18, 6, and 2
• The remaining two weeks do not have any firm orders

Develop a master production schedule.

Answer 1

Answer: 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

MPS

safety stock SS=	0
Q = lot size=	150
beginning inventory=	0
Period	1	2	3	4	5	6	7	8
Gross requirements GR	50	50	50	50	75	75	75	75
Customer orders CO	50	38	22	18	6	2	0	0
inventory on hand IOH	0	100	50	0	100	25	100	25
Requirement	50	-50	0	50	-25	50	-25	50
Net requirements NR	50	0	0	50	0	50	0	50
Master production schedule MPS	150	0	0	150	0	150	0	150
Projected on hand inventory POHI	100	50	0	100	25	100	25	100