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Problem

Prepare a schedule for the following situation: The forecast is 80 units for each of the first two periods and 60 units for each of the next three periods. The starting inventory is 20 units.

The company uses a chase strategy for determining the production lot size, except there is an upper limit on the lot size of 70 units. Also, the desired safety stock is 10 units.

Note: The ATP quantities are based on maximum allowable production and do not include safety stock. Committed orders are as follows:

(Negative amounts should be indicated by a minus sign.Leave no cells blank - be certain to enter "0" wherever required.)

Period	Customer Orders
1	82
2	80
3	60
4	40
5	20

Period	1	2	3	4	5
Forecast	80	80	60	60	60
Customer Orders	82	80	60	40	20
Projected On-Hand
MPS
ATP

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92759048

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