Question

Shown below is a partially completed MPS record for ball bearings.

a. Develop the MPS for ball bearings. ?(Enter your responses as integers. A response of? "0" is equivalent to being not? applicable.)

?Item: Ball bearings					Order? Policy: 500 units
					Lead? Time: 1 week
Quantity on? Hand: 400	Week
	1	2	3	4	5	6	7	8	9	10
Forecast	550	300	350	400	300	400	150	300	400	350
Customer orders? (booked)	300	350	250	250	150	150	150	150	100	150
Projected? on-hand inventory
MPS quantity	500

  

Answer 1

The projected available inventory is calculated using the following formula -

Where I_t = projected on-hand inventory of the period-t. G_t, Q_t, and O_tare the Forecast, MPS, and Orders of period-t respectively.

First, calculate the I_t's with MPS=0 for all the periods.

Next, starting from period 1, enter MPS=500 whenever the projected inventory is less than zero. Enter one period at a time.