Prepare a master schedule including ATP for the following situation. The forecast for each period is 70 units. The starting inventory is zero. The MPS rule is to schedule production if the projected on hand inventory is negative. The production lot size is 100. The following table shows the committed orders. Period | Customer Orders 80 1. 50 3 30 4 10

Practical Management Science
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Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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**Master Schedule and Available to Promise (ATP) Planning**

**Task:**
Prepare a master schedule including Available to Promise (ATP) for the following situation:
- The forecast for each period is 70 units.
- The starting inventory is zero.
- The Master Production Schedule (MPS) rule is to schedule production if the projected on-hand inventory is negative.
- The production lot size is 100.

**Committed Customer Orders:**

| Period | Customer Orders |
|--------|-----------------|
| 1      | 80              |
| 2      | 50              |
| 3      | 30              |
| 4      | 10              |

**Explanation:**
You are tasked with creating a master schedule that balances customer demand with production capacity while keeping the projected on-hand inventory from becoming negative. You should calculate ATP to ensure efficient delivery planning based on the committed orders and forecasted demand.

**Steps:**
1. Calculate the projected on-hand inventory for each period.
2. Schedule production only when on-hand inventory is expected to be negative.
3. Determine ATP by considering the starting inventory, production schedules, and customer orders.
Transcribed Image Text:**Master Schedule and Available to Promise (ATP) Planning** **Task:** Prepare a master schedule including Available to Promise (ATP) for the following situation: - The forecast for each period is 70 units. - The starting inventory is zero. - The Master Production Schedule (MPS) rule is to schedule production if the projected on-hand inventory is negative. - The production lot size is 100. **Committed Customer Orders:** | Period | Customer Orders | |--------|-----------------| | 1 | 80 | | 2 | 50 | | 3 | 30 | | 4 | 10 | **Explanation:** You are tasked with creating a master schedule that balances customer demand with production capacity while keeping the projected on-hand inventory from becoming negative. You should calculate ATP to ensure efficient delivery planning based on the committed orders and forecasted demand. **Steps:** 1. Calculate the projected on-hand inventory for each period. 2. Schedule production only when on-hand inventory is expected to be negative. 3. Determine ATP by considering the starting inventory, production schedules, and customer orders.
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