Question

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: 100 units
					Lead​ Time: 1 week
	January				February
Quantity on​ Hand: 70	Week
	1	2	3	4	5	6	7	8
Forecast	65	70	65	40	45	45	45	50
Customer orders​ (booked)	40	10	90	0	30	65	0	0
Projected​ on-hand inventory
MPS quantity

Answer 1

Quantity on hand = 70 units

Order policy = 100 units

	1	2	3	4	5	6	7	8
Forecast	65	70	65	40	45	45	45	50
Customer Orders (Booked)	40	10	90	0	30	65	0	0
Projected on-hand inventory	5	35	45	5	60	95	50	0
MPS Quantity	0	100	100	0	100	100	0	0

Explanation -

Projected on-hand inventory = Inventory from previous week - Current Week's Requirements

Current week's Requirements = Maximum (Forecast , Customer Orders)

MPS = New Order placed

Calculations : -

Week 1 -

Current week's requirements = Maximum(65,40) = 65

Projected on - hand inventory = 70 - 65 = 5

MPS = 0

Week 2 -

Current week's requirements = Maximum (70,10) = 70

Quantity in hand = 5

Hence, we need to place order for 100 units.

Hence, New quantity on hand = 100+5 = 105

Projected on-hand inventory = 105 - 70 = 35

MPS = 100 (Reason: order placed for 100 units in week 2)

Week 3 -  

Current week's requirements = Maximum (65,90) = 90

Quantity in hand = 35

Hence, we need to place order for 100 units.

Hence, New quantity on hand = 100+35 = 135

Projected on-hand inventory = 135 - 90 = 45

MPS = 100 (Reason: order placed for 100 units in week 3)

Week 4 -

Current week's requirements = Maximum (40,0) = 40

Quantity in hand = 45

Projected on-hand inventory = 45 - 40 = 5

MPS = 0

Week 5-

Current week's requirements = Maximum (45,30) = 45

Quantity in hand = 5

Hence, we need to place order for 100 units.

Hence, New quantity on hand = 100+5 = 105

Projected on-hand inventory = 105 - 45 = 60

MPS = 100 (Reason: order placed for 100 units in week 5)

Week 6 -

Current week's requirements = Maximum (45,65) = 65

Quantity in hand = 60

Hence, we need to place order for 100 units.

Hence, New quantity on hand = 100+60 = 160

Projected on-hand inventory = 160  - 65 = 95

MPS = 100 (Reason: order placed for 100 units in week 6)

Week 7 -

Current week's requirements = Maximum(45,0) = 45

Projected on - hand inventory = 95 - 45 = 50

MPS = 0

Week 8 -

Current week's requirements = Maximum(50,0) = 50

Projected on - hand inventory = 50 - 50 = 0

MPS = 0