Concept explainers
An end item’s demand
The booked customer orders for the item, starting with week 1, are 22, 30, 15, 11, 0, 0, 9, 0, 0, and 0 units. The lead time is 2 weeks.
- Develop an MPS for this end item.
- The marketing department has received six orders for this item in the following sequence:
Order 1 is for 40 units to be delivered in period 3.
Order 2 is for 60 units to be delivered in period 4.
Order 3 is for 70 units to be delivered in period 6.
Order 4 is for 40 units to be delivered in period 3.
Order 5 is for 20 units to be delivered in period 5.
Order 6 is for 115 units to be delivered in period 9.
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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Operations Management: Processes and Supply Chains (11th Edition)
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