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4. (20 points) A company has the following information concerning demand and supply of a particular product: Period 1 2 3 4 S 6 7
4. (20 points) A company has the following information concerning demand and supply of a particular product: Period 1 2 3 4 S 6 7 8 9 10 Demand forecast 120 40 50 40 55 45 50 50 50 50 Orders on hand 120 40 50 10 55 0 0 0 0 Planned supply 145 45 50 50 50 50 50 50 50 50 Note: The demand forecast includes orders on hand plus an estimate of future customer orders yet to be received. The above figures are NOT cumulative over time. (a) (4 points) Calculate cumulative available-to-promise quantities for each period. (b) (4 points) A new customer inquiry is received requesting delivery of 30 units in period 3, 40 units in each of periods 4, 5 and 6, and 50 units in period 7. Calculate the best delivery quote the company can offer. (c) (2 points) Assuming the quote is accepted, calculate updated cumulative available-to-promise quantities for each period. (d) (5 points) Suppose the lead time for producing the product is 3 periods and the yield is 85%. The product supply in period 1 includes 100 units already in finished goods inventory plus 45 units projected output from work-in-process. The remaining work-in-process is projected to supply 45 units in period 2 and another 50 units in period 3. Perform requirements planning calculations to compute required production start quantities in each period satisfying the demand forecasts. Assume demand forecasts do not change as a result of the new customer inquiry. You can report fractional amounts to the nearest tenth of a unit. (e) (5 points) Perform requirements planning calculations to compute required production start quantities in each period satisfying only the orders on hand, excluding the new customer inquiry. You can report fractional amounts to the nearest tenth of a unit
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