In: Operations Management
| 
 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  | 
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