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Task 2: A small Tennessee company makes fused magnesia and silica. To prepare input for the planning software, the company first uses a spreadsheet to determine the capacity requirements for the main equipment (the fusion furnaces) and the production schedule for main products. Product#3050 had the following forecasted sales and outstanding orders (all in thousand pounds): January February Week 2 3 4 1 2 3 4 Forecast 25 25 25 33 33 33 Order 20 0 10 33 The initial inventory is 40,000 pounds and 30,000 pounds are desired as the minimum safety stock at the end of each week. Considering the holding and setup costs with EPQ, the company has found that the optimum production quantity is around 40,000 units in each run. Use this production quantity to determine the production schedule (MPS) and Available to Promise inventory for the next 7 weeks. [10 Marks) Solution: January February WK2 WK3 WK4 WK1 WK2 WK3 WK4 Forecast 25 25 25 33 33 33 33 Committed 20 0 10 Beg Inv. 40 Production (Min = 30 Available- to-promise