1. Kates would like to develop a master production schedule for its popular Duo Coat paint over the next 4 quarters. The quarterly forecast (in 1000 gallons) for the Duo Coat paint is provided in the table below. Kates has currently 30K gallons of Duo Coat paint on hand. Whenever a production is scheduled in a quarter, the lot size for that production is always 80K per quarter. As the production manager of Kates, using time-phased record, develop a master production schedule to minimize the ending inventory (i.e., the inventory at the end of the 4th quarter).

2. How would you modify your MPS for problem-1 above if Kates keeps a safety stock of 15K gallons of Duo Coat paint?

3. In problem-1 above, the actual sales in the first quarter turned out to be 10K instead of the forecasted 20K. Also, Sherwin Williams had to update its forecast for quarters 2-4 due to an unexpected slowdown in the business as demonstrated below. How should you modify the MPS using rolling through time method? (Assume there is no safety stock.)

Quarter On Hand 1 2 3 Forecast 20 70 70 20 Projected Available Balance 30 MPS Quarter On Hand 1 23 Forecast 50 Projected Available Balance MPS