A brick seller's demand forecasts for the next 10 weeks are 25, 25, 25, 25, 20, 30, 30, 30, 25, and 30 units. The current on-hand inventory is 110 units. The order policy is to produce in lots of 70. The booked customer orders for the item, starting with week 1, are 12, 35, 5, 7, 5, 9, 3, 12, 0, 0, and 0 units. The lead time is 2 weeks.

a. Develop an MPS for the bricks.

b. The marketing department has received five orders for this item in the following sequence:

Assuming that the prospective MPS you developed in part (a) does not change, which orders would you be able to accept based on the available to promise (ATP)?

Transcribed Image Text:

Order 1 is for 18 units to be delivered in period 1. Order 2 is for 70 units to be delivered in period 3. Order 3 is for 85 units to be delivered in period 6. Order 4 is for 70 units to be delivered in period 7. Order 5 is for 85 units to be delivered in period 9.