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A company that makes industrial pumps wants to prepare a master production schedule for June and July. Marketing has forecasted demand of 120 pump for
A company that makes industrial pumps wants to prepare a master production schedule for June and July. Marketing has forecasted demand of 120 pump for June and 160 pumps for July for its major product. These will be evenly distributed over the four weeks in each month: 30 per week in June and 40 per week in July as illustrated in the following table. Suppose that there are currently 64 units of the pump on hand, and that there are some customer orders that have been committed (booked) and must be filled. Suppose that the economic production quantity is 80 unites. Every time projected on-hand inventory becomes negative, another production lot of 80 units is added to the table. Calculate the project on-hand inventories, planned production, and available to promise inventory (Explain in detail)
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