Walmart tends to keep the inventory low. At the same time, it is important to respond to demand quickly, since a customer who wants a product K is very likely to get one from a competitor if Walmart doesnt have one available immediately. Walmart's current policy to produce product K is to produce 100 per week, which is the average demand. Even this is a problem, as the production manager has pointed out since the equipment is also used for other products and the lot size of 300 would be much more efficient. He said he is currently setting up the production for product K for the next week and states that he has the capacity available to produce 300 at a time next week.

The following lists the forecasts and actual customer orders for the next 12 weeks.

Week	1	2	3	4	5	6	7	8	9	10	11	12
Forecast	90	90	87	80	85	95	100	110	90	90	100	110
Customer Orders	105	97	93	72	98	72	53	21	17	6	2	5

The president of Walmart has said that he wants to consider using a formal MPS with ATP logic to meet demand more effectively without impacting inventory. Walmart has found out that its current inventory is 25 units at the beginning of week 1 (i.e., initial inventory). Assume Walmart will use the MPS lot size of 300 and produce the first of those lots in week 1.

** Please note that the it does not has a time fence between week 1 to week 3, and please answer b question **

a) Develop a master schedule using the information above (Note: Using Excel to develop the Master Schedule and ATP).

b) A customer has just requested a major order of 55 units of product K for delivery in week 4. What would you tell the customer about having such an order? Why? What if the customer requested a major order of 70 instead of 55 units? What will happens if the customer increases the major order to 100 units?