In: Operations Management
Shonga PLC produces tables. According to the forecasts, there will be demand for 200 tables during the next four weeks and 250 from week 5 to week 8, but costumers have previously ordered 210, 80 40, and 70 pieces for the first four weeks. We also know that we have an on-hand inventory of 400 tables, order policy contains 200 units and lead time is 1 week. Develop the Master Plan Schedule.
Answer: steps for MPS
step 1 | IOH= | PIOH of last week | |
step 2 | Requirement= | D+SS-IOH | CO will be taken instead of D when CO>D |
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-D | CO will be taken instead of D when CO>D |
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= | 200 | |||||||
beginning inventory= | 400 | |||||||
Period | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 |
Demand | 200 | 200 | 200 | 200 | 250 | 250 | 250 | 250 |
Customer orders CO | 210 | 80 | 40 | 70 | 0 | 0 | 0 | 0 |
On-Hand Inventory IOH | 400 | 190 | 190 | 190 | 190 | 140 | 90 | 40 |
Requirement | -190 | 10 | 10 | 10 | 60 | 110 | 160 | 210 |
Net requirements NR | 0 | 10 | 10 | 10 | 60 | 110 | 160 | 210 |
Master production schedule MPS | 0 | 200 | 200 | 200 | 200 | 200 | 200 | 400 |
Projected On-Hand Inventory POHI | 190 | 190 | 190 | 190 | 140 | 90 | 40 | 190 |
MPS start Lead time= 1 |
200 | 200 | 200 | 200 | 200 | 200 | 400 | 0 |
available to promise ATP (discrete) | 190 | 120 | 160 | 130 | 200 | 200 | 200 | 400 |