Tabard Industries forecasted the following demand for one of its most profitable products for the next 8 weeks: 20, 120, 120, 100, 100, 100, 80, and 80 units. The booked customer orders for this product, starting in week 1 are: 100, 80, 60, 40, 10, 10, 0, and 0 units. The current on-hand inventory is 150 units, the order quantity is 200 units, and the lead time is one week.
a. Develop a MPS for this product.
b. The marketing department revised its forecast. Starting with week 1, the new forecasts are: 120, 120, 120, 150, 150, 150, 100, and 100 units. Assuming that the prospective MPS you developed in part (a) does not change, prepare a revised MPS record. Comment on the situation that Tabard now faces.
c. Returning to the original forecasted demand level and the MPS record you developed in part (a), assume that marketing accepted a new customer order for 200 units in week 2 and thereby booked orders in week 2 is now 280 units. Assuming that the prospective MPS you developed in part (a) does not change, prepare a revised MPS record. Comment on the situation that Tabard now faces.