Question

In: Operations Management

Shonga PLC produces tables. According to the forecasts, there will be demand for 200 tables during...

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.

Solutions

Expert Solution

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

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