1. Excelsior Springs Ltd. schedules production of one end product, Hi-

Sulphur, in batches of 80 units whenever the projected ending inventory balance in a quarter falls below 10 units. It takes one quarter to make a batch of 80 units. Excelsior currently has 30 units on hand. The forecast for the next four quarters is:

a. Prepare a time-phased MPS record showing the forecast and MPS for Hi-Sulphur.

b. What are the inventory balances at the end of each quarter?

c. During the first quarter, no units were sold. The revised forecast for the rest of the year is:

How does the MPS change?

Transcribed Image Text:

Quarter 1 2 3 4 Forecast 20 70 70 20