Georgia Clay and Gravel was updating the MPS record for one of its products, Smell Fresh Cat
Question:
Georgia Clay and Gravel was updating the MPS record for one of its products, Smell Fresh Cat Litter.
a. Complete the following MPS time-phased record.
Item: Smell Fresh | On hand | Week | |||||||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | ||
Forecast | 20 | 20 | 20 | 30 | 30 | 30 | 30 | 30 | |
Orders | 5 | 3 | 2 |
|
|
|
|
| |
Projected available balance | 20 | 50 | 30 | 10 | 30 | 50 | 20 | 40 | 10 |
Available-to-promise |
|
|
|
|
|
|
|
| |
MPS | 50 |
|
| 50 | 50 |
| 50 |
|
MPS Lot Size = 50.
The following events occurred during week 1:
• Actual demand during week 1 was 35 units.
• Marketing forecasted that 80 units would be needed for week 9.
• An order for 10 in week 2 was accepted.
• An order for 40 in week 4 was accepted.
• An order for 12 in week 3 was accepted.
• The MPS in week 1 was produced as planned.
b. Update the record below after rolling through time.
Item: Smell Fresh | On hand | Week | |||||||
2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | ||
Forecast |
|
|
|
|
|
|
|
| |
Orders |
|
|
|
|
|
|
|
| |
Projected available balance | 45 |
|
|
|
|
|
|
|
|
Available-to-promise |
|
|
|
|
|
|
|
| |
MPS |
|
|
|
|
|
|
|
|
MPS Lot Size = 50.
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson