The order policy is to produce end item A in lots of 50 units. Using the data shown in Figure 11.24 and the FOQ lot-sizing rule, complete the projected on-hand inventory and MPS quantity rows. Then, complete the MPS start row by offsetting the MPS quantities for the final assembly lead time. Compute the available-to-promise inventory for item A. Finally, assess the following customer requests for new orders. Assume that these orders arrive consecutively and their effect on ATP is cumulative. Which of these orders can be satisfied without altering the MPS start quantities?

Data from Figure 11.24:

a. Customer A requests 30 units in week 1.
b. Customer B requests 30 units in week 4.
c. Customer C requests 10 units in week 3.
d. Customer D requests 50 units in week 5.

Transcribed Image Text:

Item: A Quantity on Hand: Forecast Customer orders (booked) Projected on-hand inventory MPS quantity MPS start Available-to- promise (ATP) inventory 5 1 20 10 2 30 20 25 50 3 40 сл 4 10 8 Week 56 2 Order Policy: 50 units Lead Time: 1 week 7 30 8 20 9 10 40 20