Question

The following table shows the demand forecasts and committed orders so far for a product in the next eight weeks.
Month	Forecast	Committed orders
1	60	82
2	60	80
3	60	60
4	60	40
5	45	20
6	45	0
7	45	0
8	45	0
The lot size has been determined to be 80 units whenever there is scheduled production. Beginning inventory is 95 units.
Calculate the MPS and ATP for each week. If there is no MPS or ATP for a week, enter 0. No decimals.
Months	MPS	ATP
1
2
3
4
5
6
7
8

Answer 1

Explanation

1. Requirement = Max(Forecast,orders)
2. Opening inventory = 95 units for period 1 and for other periods, Opening inventory = Projected on-hand inventory after production of previous periods
3. Projected on-hand inventory without production = Opening Inventory – requirement
4. MPS = If Projected on-hand inventory without production is less than 0, then MPS – 80 else 0
5. Projected on-hand inventory after production = MPS+opening inventory – requirement
6. ATP happens only when there is MPS scheduled

ATP for period 1 = Opening inventory + MPS - (Actual customer orders till we have another MPS)

ATP for other periods = MPS - (Actual customer orders till we have another MPS)