Part 1: The chart below shows the Master Production Schedule (MPS) and committed customer orders for a new MP3 Player you manufacture. Based on this information calculate Available to Promise (ATP.)

Part 2: To make your product you use 2 machines in sequence, machine A first for 15 minutes and then machine B for 20 minutes. Youre currently using a chase production strategy and demand is expect to be 450 this month and 500 next month.

1. In what weeks are you available to promise more than 0 MP3 players?

2. The production plan for this product would be ___________ for the first month and __________ for the second month. Answer in numeric form.

3. Which of the following statements regarding bottlenecks is true.

- Neither machine is a bottleneck

- Machine A is a bottleneck but Machine B is not

- Machine B is a bottleneck but Machine A is not

- Both machines are bottlenecks

4. The bottle neck is this equation lasts for ____________ minutes, which means you can produce ___________ machines per hour. Answer in numeric form.

5. Assuming 20 work days in a month and 8 hours per work day, is your production plan feasible?

- Yes

- No

You are considering whether you to buy some flexible, general purpose equipment which has low fixed costs and higher variable costs to operate, or whether to buy some specialized equipment that has high fixed costs but low variable costs to operate, that you will use to produce Part A. Use the break even analysis to help decide which option to pursue, assume the fixed costs for the general purpose equipment are $50,000 and the fixed costs for the specialized equipment are $200,000. The variable costs for the general purpose and the specialized equipment or $40 and $15 respectively.

6. What is the break even quantity?

- 6000

-3000

-10,000

7. If your expected annual usually for Part A is 3000, should you buy the general purpose or the specialized?

- General purpose

- Specialized equipment

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Discrete ATP Calculation MP3 Player MP3 BI = 25 Committed Customer Orders ATP:D 350 300 250 100 250 200 300 350 300 250 200 175 350 325 275 110