In: Operations Management
Complete the MPS record below for a single item.
(Enter
your responses as integers. A response of "0" is equivalent to being not
applicable.)
Item: A |
Order Policy: 60 units |
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Lead Time: 1 week |
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Quantity on Hand: 3535 |
Week |
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1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
Forecast |
20 |
18 |
25 |
28 |
21 |
30 |
36 |
38 |
Customer orders (booked) |
15 |
17 |
9 |
17 |
9 |
0 |
7 |
0 |
Projected on-hand inventory |
||||||||
MPS quantity |
||||||||
Information given is as under:
Quantity on Hand: |
3535 |
|||||||
Week |
||||||||
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
Forecast |
20 |
18 |
25 |
28 |
21 |
30 |
36 |
38 |
Customer orders (booked) |
15 |
17 |
9 |
17 |
9 |
0 |
7 |
0 |
Projected on-hand inventory |
||||||||
MPS quantity |
Projected on-hand inventory = Beginning inventory – (Greater of Forecast or Customer orders booked)
Beginning Inventory for Period week1 = Quantity on hand = 3535
Projected on-hand inventory Week 1= 3535 – Max(20,15) = 3535-20 – 3515
Since the Projected on hand is positive, MPS quantity will be nil i.e. “0”.
3515 becomes the beginning inventory for Week 2
Based on the above logic, the complete MPS record is as under:
Quantity on Hand: |
3535 |
|||||||
Week |
||||||||
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|
Forecast |
20 |
18 |
25 |
28 |
21 |
30 |
36 |
38 |
Customer orders (booked) |
15 |
17 |
9 |
17 |
9 |
0 |
7 |
0 |
Projected on-hand inventory |
3515 |
3497 |
3472 |
3444 |
3423 |
3393 |
3357 |
3319 |
MPS quantity |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |