Chester's Chippers makes oversized golf clubs. The company president has asked you to show her how master scheduling techniques could be applied to her business. You have the following data:
a. Inventory at the beginning of April is expected to be 50 clubs.
b. Total monthly forecasted demand for April and May are 800 and 1,000, respectively. Demand is expected to be spread evenly throughout the month.
c. The company makes just enough clubs to meet forecasted demand for each month. These clubs will be ready to sell in the first week of every month.
d. The company already has orders booked as follows:
1st week, April 220 1st week, May 240
2nd week 215 2nd week 230
3rd week 210 3rd week 180
4th week 205 4th week 150
a. Complete the ATP below.
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On hand inventory at beginning of
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Month
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April
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May
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Week
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Forecast demand
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Orders Booked
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Proj. on Hand
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Inventory
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Master Sched.
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Available to Promise
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b. Is the company in trouble yet? Explain.