1.1 Encom Computer Encom Computer has forecasted the following demand for one of its products for next eight weeks: 70, 70, 65, 60, 55, 85, 75, and 85. The booked customer orders for this product, starting in week 1, are 50, 80, 55, 40, 35, 0, 0, and 0 units. The current on-hand inventory is 90 units, the order quantity is 150 units, and the lead time is 1 week.

A. Develop an MPS for this product

B. The marketing department at Encom has revised its forecasts. Starting with week 1, the new forecasts are 70, 70, 75, 70, 70, 100, 100, and 110 units. Assuming that the prospective MPS developed in part (a) does not change, prepare a revised MPS record. Comment on the situation that Encom now faces.

(The idea of point b is to keep the production schedule intact, and analyze how the change in the sales forecast affects the final inventory)

1.2 Air Hose

Below is a partially completed MPS record for 2 pneumatic control valves. Suppose that you have received the following orders for the valves.

Suppose that you have received the following orders for the valves:

Order #1: 25 units requested for week 5

Order #2: 20 units requested for week 1

Order #3: 15 units requested for week 3

Order #4: 75 units requested for week 7

As orders arrive you must decide whether to accept or reject them. Which orders would you accept for shipment?

(In the ATP tables, values for Available-to-promised are always marked for the first possible week when the amount could be delivered. The products can be delivered immediately that week or they can be stored to wait later delivery. The free amounts of different weeks are not added cumulatively to the table for technical reasons, because accepting an order would then require several weeks of cumulative ATP numbers the bill again. It is much easier to subtract only the ATP numbers of the weeks from which the delivery requires the units are earmarked".)