In: Operations Management
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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 |
??? |
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|
Master production schedule |
600 |
900 |
750 |
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|
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