4. The customer described in question 3 decides against placing the order for the extra units in week 4, but shortly thereafter you are informed that someone in the warehouse dropped a box of component C and broke 20 of them. They had to be scrapped. Describe the consequences and a plan of action to deal with the problem. Assume the lead time for component C is a firm 2 weeks.

CompanyBenzie Products Company produces several lines of products, but one (they call it “product X”) uses unique parts to produce it and the demand is very seasonal. There are some possible variations in the design, so the company tends to use available-to-promise (ATP) logic to master schedule the product. Since the components to produce it are quite expensive, the company tries very hard to minimize any inventory of the product or its components during the seasons with very low sales. Product X is just now entering the low season, and the following chart represents the forecast data and actual customer orders for the next ten weeks:Week12345678910Forecast2520161615151311109Customer Orders272116131197432Master Production Schedule505050