In: Operations Management
On hand inventory at end of week 5 = 75 |
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Week |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
Forecasted demand |
200 |
200 |
200 |
300 |
300 |
300 |
250 |
250 |
Booked orders |
265 |
210 |
190 |
280 |
260 |
225 |
180 |
120 |
Projected ending inventory |
??? |
|||||||
Master production schedule |
600 |
900 |
750 |
|||||
Available to promise |
XXX |
Q1: What is the Projected Ending Inventory for week 6?
a. 400 units.
b. 475 units.
c. 335 units.
d. None of these answers are correct.
e. 410 units.
On hand inventory at end of week 5 = 75 |
||||||||
Week |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
Forecasted demand |
200 |
200 |
200 |
300 |
300 |
300 |
250 |
250 |
Booked orders |
265 |
210 |
190 |
280 |
260 |
225 |
180 |
120 |
Projected ending inventory |
??? |
|||||||
Master production schedule |
600 |
900 |
750 |
|||||
Available to promise |
XXX |
Q2: What is the Projected Ending Inventory for week 7?
a. 215 units
b. 0 units.
c. None of these answers is correct.
d. 275 units.
e. 200 units
On hand inventory at end of week 5 = 75 |
||||||||
Week |
6 |
7 |
8 |
9 |
10 |
11 |
12 |
13 |
Forecasted demand |
200 |
200 |
200 |
300 |
300 |
300 |
250 |
250 |
Booked orders |
265 |
210 |
190 |
280 |
260 |
225 |
180 |
120 |
Projected ending inventory |
||||||||
Master production schedule |
600 |
900 |
750 |
|||||
Available to promise |
??? |
XXX |
Q3: What is the Available to Promise for week 6?
a. Minus 65 units.
b. None of these answers is correct.
c. 125 units.
d. 0 units.
e. Minus 75 units.
f. 10 units.
g. 200 units.
Projected ending inventory for current week = Master production scheduleIf any) + projected ending inventory for last week - Max(forecasted demand , booked orders)
therefore
Projected ending inventory for week6 = Master production schedule + projected ending inventory for week5 - Max(200 , 265)
= 600 + 75 - 265
= 410 units
Q1 the Projected Ending Inventory for week 6 is e) 410 units
Projected ending inventory for week7= projected ending inventory for week6 - Max(200 , 210)
= 410 - 210
= 200 units
the Projected Ending Inventory for week 7 is e) 200 units
Available to promise = projected ending inventory for last week + MPS - sum of all booked orders till next MPS
therefore available to promise for week6 = On hand inventory for week5 + MPS for week6 - (sum ofbooked order for week6, 7 and 8)
= 75 + 600 - (265 + 210 + 190)
= 10 units
Available to Promise for week 6 is f) 10 units