Question

Given the forecast and booked orders shown in the? table, and a beginning inventory of? 75, what is the available to promise inventory for period? 4? The company operates with a lot size of 50.

Period	1	2	3	4
Forecasted Demand	500	450	400	600
Booked Orders	520	400	325	450
Projected Ending Inventory
Master Production Schedule
Available to Promise

Answer 1

• The forecast and booked orders shown in the table
• Beginning inventory is 75,
• The company operates with a lot size of 50.

The available to promise inventory for period 4 = 20 numbers , but with less supply of 150 numbers against the demand, because the stock is not sufficient to meed the demand forecast. The forecats demand for period 4 was 600 numbers, but with including the inventory of previous period, the total stock comes to be 450. Thus there is differenceof 150 between the production schedule and the forecast demand.

Kindly refer the below table for more details for each period.

Period	1	2	3	4
Forecasted Demand	500	450	400	600
Booked Orders	520	400	325	450
Projected Ending Inventory	75+520= 595-500 =95	400+95=495 - 450=45	325+45=370-350=20	450+20=470-450 =20
Master Production Schedule	500	450	350	450
Available to Promise	95	45	20	20
Demand meets forecats ?	Yes	Yes	No, less by 50	No less by 150