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Consider the following example. A company that makes industrial pumps wants to prepare a master production schedule for June and July. Marketing has forecasted
Consider the following example. A company that makes industrial pumps wants to prepare a master production schedule for June and July. Marketing has forecasted demand of 120 pumps 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 Figure 12-6. Now, suppose that there are currently 64 pumps in inventory (i.e., beginning inventory is 64 pumps), and that there are customer orders that have been committed (booked) and must be filled (see Figure 12-7). Prepare another master scheduling table for the pumps of Figure 12-11; use the same inputs as the example, but change the master scheduling rule from "schedule production when the projected on-hand inventory would be negative without production" to "schedule production when the projected on-hand inventory would be less than 10 units without production." (Do not leave any empty spaces; input a 0 wherever it is required.) Forecast Committed Projected on hand (min = 10) Produce (lot size = 70) Available-to-promise June 3 30 1 2 4 6 7 8 30 30 30 40 40 40 64 July 5 40
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