An end item’s demand forecasts for the next 10 weeks are 30, 30, 30, 30, 20, 20, 30, 30, 30, and 30 units. The current on-hand inventory is 100 units. The order policy is to produce in lots of 75. The booked customer orders for the item, starting with week 1, are 15, 38, 7, 5, 0, 3, 10, 0, 0, and 0 units. The lead time is 2 weeks.
a. Develop an MPS for this end item.
b. The marketing department has received five orders for this item in the following sequence:
Order 1 is for 20 units to be delivered in period 1
Order 2 is for 75 units to be delivered in period 4
Order 3 is for 90 units to be delivered in period 6
Order 4 is for 75 units to be delivered in period 7
Order 5 is for 90 units to be delivered in period 10
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)?