An end item’s demand forecasts for the next 6 weeks are 30 units, followed by forecasts of 25 units for weeks 7 though 10. The current on-hand inventory is 60 units. The order policy is to produce in lots of 100. The booked customer orders for the item, starling with week 1, are 22, 30, 15, 11, 0, 0, 9.0, 0, and 0 units. The lead time is 2 weeks.
a. Develop an MPS for this end item.
b. The marketing department has received six orders for this item in the following sequence:
Order 1 is for 40 units to be delivered in period 3
Order 2 is for 60 units to be delivered in period 4
Order 3 is for 70 units to be delivered in period 6
Order 4 is for 40 units to be delivered in period 3
Order 5 is for 20 units to be delivered in period 5
Order 6 is for 115 units to be delivered in period 9
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)?