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)

Given the following Master Schedule:

Week	Customer order
1	34
2	29
3	28
4	35
5	32
6	33
7	35
8	35

Week
Begining inventory= 12	1	2	3	4	5	6	7	8
Forecast
Customer Orders
Projected On-Hand Hand Inventory
MPS
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)