Rationale

The previous MPS plan included a receipt that was required in period $1.$ It has been carried over and is shown in the grid.

PAB for periods $1$ and $2$ will use actual orders for the calculation, as they are before the demand time fence. In period $3,$ the

actual orders are equal to the period $2$PAB, with a resulting PAB of zero in period $3.$ This is less than safety stock and

requires an MPS receipt to be scheduled in period $3.$

For this question, use the following example for an MTS environment. Note that the MPS receipt scheduled in period $1$ was

carried over from a previous plan.

On hand: $20$

Planning time fence: $7$

Lot size: $40$

Safety stock: $5$

Demand time fence: $2$

Given the above information, in which period will the first MPS receipt occur after the demand time fence?

Answers

Period $1$

Can't tell

Period $3$

Period $2$