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  | 
|||||||
| 
 Lead Time: 1 week  | 
||||||||
| 
 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  | 
||||||||
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  |