Problem 4 - Page 530, Q28 b, c 28. Minco Inc. is a small manufacturer of fused magnesia and silica.? Minco's continuous improvement efforts led to a capacity and production planning software. To prepare for the use of software, a spreadsheet was first used to determine the capacity requirements for the main equipment (the fusion furnaces) and the production schedule for the main products. A major product had the following forecast and committed orders (all in thousand pounds): January February Week 2 3 4 1 2 3 4 Forecast 56 56 56 66 66 66 66 Committed order 44 0 18 The initial inventory was 119,000 pounds and the minimum stock at the end of each week was to be 83,000 pounds. L04 b. If the EPQ = 100,000 pounds, prepare a production schedule for this product for the next seven weeks. c. Determine the available-to-promise inventory for the next seven weeks. Before you begin: 1) The information in the question is in thousands, drop the last three zeros so the data is consistent with the forecasts and the committed orders. Thus the initial inventory is 119, the production quantity (or EPQ) is 100 pounds, and the minimum safety stock is 83. OPMG 2258 Page 2 Assignment 2 2) This question has a safety stock. Thus the projected on hand cannot fall below 83 units. 3) Set up the information provided in the following table, and then prepare the production schedule, including when to produce, and then determine the available to promise. January 3 February 2 3 Week 2 4 1 4 Forecast Committed Projected on hand (min = 83) Produce (lot size = 100) Available to promise 119