In an effort to reduce setup frequency, DDKC has decided to use an MPS order quantity of
Question:
In an effort to reduce setup frequency, DDKC has decided to use an MPS order quantity of 120 kites. (See Problem 1 for data.)
(a) Prepare the MPS using the new order quantity.
(b) Calculate the ending inventory for each period.
(c) Compare this MPS with the MPS developed in Problem 1.
Data From Problem 1:
David’s Delightful Kites Company (DDKC) manufactures kites. The most popular is David’s Daredevil model. Demand management has prepared forecast estimates for the next six weeks. Beginning inventory is 15 David’s Daredevils. As the master scheduler for DDKC, you must prepare an MPS. Your MPS order quantity is 72 kites.
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ANSWER To prepare the MPS using the new order quantity of 120 kites we first need to calculate the g...View the full answer
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