Question: Problem 2: - The forecast for each week is 30 units. - The starting inventory is 12 . - The production lot size is 70


Problem 2: - The forecast for each week is 30 units. - The starting inventory is 12 . - The production lot size is 70 (MPS) when the projected on-hand inventory is negative. - Calculate the Projected on-hand inventory (POI) - Calculate the Available to Promise (ATP) Note: The ATP quantities can be presented to the Marketing Department to promise customers the number of units to be manufactured by a specific date. Formula: Week 1 ATP = Beginning Inventory + MPS - Customer Order Week 2 ATP = MPS - Customer Order Week 3 ATP = MPS ( Wk3 + Wk4 )
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