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Essay Available:
Pages:
2 pages/≈550 words
Sources:
Level:
APA
Subject:
Accounting, Finance, SPSS
Type:
Math Problem
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 9.36
Topic:

Master Production Schedule (Math Problem Sample)

Instructions:

MAster production schedule

source..
Content:

Master Production Schedule
Name
Course
Institution
Date
Master Production Schedule
The key idea is: we have a forecast, but it turns into and actual order when we receive a customer order. MPS starts with a preliminary calculation of projected inventory. This reveals when we need production to get additional inventory.
Negative projected on-hand inventory is the signal for production. Suppose the economic production lot size for this product is 75 units. Whenever production is called, 75 units are produced. Now we can determine available to promise at each period.
Period

1

2

3

4

Forecast

50

50

50

50

Customer orders

52

35

20

12

Projected on hand inventory

23

48

73

23

MPS

75

75

75


ATP

-12

20

43


Sum booked customer orders week by week up to the next week of production. This is booked orders. The remaining inventory is ATP. ATP is only calculated for the first week and for weeks in which there is a MPS quantity. (In this example: weeks 1, 2, 3)
Available to promise in week 1 = Inventory in week 0 + Production in week 1 - Customer Orders at week 1 - Customer Orders at week 2
ATP (1) = I (0) + P (1) – CO (1) - CO(2)
ATP (1) = 0+75 -52 -35 = -12
Period

1

2

3

4

Forecast

50

50

50

50

Customer orders

52

50

30

12

Projected on hand inventory

23

48

73

23

MPS

75

75

75


ATP

-27

-5

33


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