An end item’s demand forecasts for the next 10 weeks are30, 30, 30, 30, 20, 20, 30, 30, 30, and 30 units. The current on-hand inventory is 100 units. The order policy is to produce inlots of 75. The booked customer orders for the item, startingwith week 1, are 15, 38, 7, 5, 0, 3, 10, 0, 0, and 0 units. The leadtime is 2 weeks.a. Develop an MPS for this end item.b. The marketing department has received five orders forthis item in the following sequence:Order 1 is for 20 units to be delivered in period 1Order 2 is for 75 units to be delivered in period 4Order 3 is for 90 units to be delivered in period 6 Order 4 is for 75 units to be delivered in period 7Order 5 is for 90 units to be delivered in period 10 Assuming that the prospective MPS you developed in part (a)does not change, which orders would you be able to acceptbased on the available to promise (ATP)?

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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An end item’s demand forecasts for the next 10 weeks are
30, 30, 30, 30, 20, 20, 30, 30, 30, and 30 units. The current on-
hand inventory is 100 units. The order policy is to produce in
lots of 75. The booked customer orders for the item, starting
with week 1, are 15, 38, 7, 5, 0, 3, 10, 0, 0, and 0 units. The lead
time is 2 weeks.
a. Develop an MPS for this end item.
b. The marketing department has received five orders for
this item in the following sequence:
Order 1 is for 20 units to be delivered in period 1
Order 2 is for 75 units to be delivered in period 4
Order 3 is for 90 units to be delivered in period 6

Order 4 is for 75 units to be delivered in period 7
Order 5 is for 90 units to be delivered in period 10

Assuming that the prospective MPS you developed in part (a)
does not change, which orders would you be able to accept
based on the available to promise (ATP)?

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