The Acme Water Pump company has a problem. The pumps are fairly expensive to make and store, so the company tends to keep the inventory low. At the same time, it is important to respond to demands quickly, since a customer who wants a water pump is very likely to get one from a competitor if Acme doesn$$t have one available immediately. Acme$$s current policy to produce pumps is to produce $100$ per week, which is the average demand. Even this is a problem, as the production manager has pointed out, since the equipment is also used for other products and the lot size of $300$ would be much more efficient. He said he is currently set up for water pump production for the next week and states that he has capacity available to produce $300$ at a time next week.

The following lists the forecasts and actual customer orders for the next $12$ weeks

Alternate View

Week

$1$

$2$

$3$

$4$

$5$

$6$

$7$

$8$

$9$

$10$

$11$

$12$

Forecast

$90$

$120$

$110$

$80$

$85$

$95$

$100$

$110$

$90$

$90$

$100$

$110$

Customer Orders

$105$

$97$

$93$

$72$

$98$

$72$

$53$

$21$

$17$

$6$

$2$

$5$

The president of Acme has said that he wants to consider using a formal MPS with ATP logic to try to meet demand more effectively without a large impact on inventory. Acme has decided to use a demand time fence at the end of week $3$ and has also found out that its current inventory is $25$ units. Assume Acme will use the MPS lot size of $300$ and that it will produce the first of those lots in week $1.$ WHAT TQM TOOLS WOULD BE REQUIRE FOR THIS OPERATION