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Assignment #2 - Master Scheduling

The document provides instructions and data for three questions regarding inventory management and master production scheduling. Question 1 provides sales forecasts and asks to complete a projected available balance and master production schedule for a 6-week period. Question 2 provides forecasts for two product models and asks to calculate a production plan and master production schedule. Question 3 provides forecasts and customer order data over 12 weeks and asks to develop a master schedule using ATP logic, commenting on a potential large customer order.

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Justin Thomas
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229 views2 pages

Assignment #2 - Master Scheduling

The document provides instructions and data for three questions regarding inventory management and master production scheduling. Question 1 provides sales forecasts and asks to complete a projected available balance and master production schedule for a 6-week period. Question 2 provides forecasts for two product models and asks to calculate a production plan and master production schedule. Question 3 provides forecasts and customer order data over 12 weeks and asks to develop a master schedule using ATP logic, commenting on a potential large customer order.

Uploaded by

Justin Thomas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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BU1273 – Inventory Management

Master Schedule Assignment

Instructions: Use your knowledge from the chapter to prepare responses to the following questions.
This assignment is due on December 10th at 11:59pm EST.

QUESTION 1

The sales department of a manufacturer has prepared the following six-week forecast for one of their
products. The product is produced in lots of 220, and the opening inventory is 300 units. Complete the
projected available balance and the master production schedule.

Week 1 2 3 4 5 6
Forecast Sales 200 300 300 200 150 150
Projected 300
Available Balance
MPS

QUESTION 2

Cheese Graters Inc. makes unique cheese graters. The production plan is based on months. There are 4
weeks in this month. Opening inventory is 2000 dozen, and it is planned to increase to 4000 dozen by
the end of the month. The MPS is made using weekly periods. The forecast and projected available
balance for the two models follow. The lot size for both models is 1000 dozen. Calculate the production
plan and the MPS for each item.

*HINT: When determining your production plan for the first table, assume that you will use a level
production plan. This requires you to apply your knowledge from the previous chapter on Production
Planning (Chapter 2) to calculate your production plan for the first table.

Production Plan
Week 1 2 3 4 Total
Forecast 3000 3500 3500 4000
Projected Available 2000
Balance
Production Plan

Model A
Week 1 2 3 4 Total
Forecast 2000 2000 2500 2000
Projected Available 1500
Balance
Production Plan
Model B
Week 1 2 3 4 Total
Forecast 1000 1500 1000 2000
Projected Available 500
Balance
Production Plan

QUESTION 3

ABC Company has a problem. They produce valves which are expensive to produce and store, so the
company tends to keep inventory low. At the same time, it is important to respond to demands quickly,
since a customer who wants a valve is very likely to get one from a competitor if ABC Company doesn’t
have one available immediately.

ABC Company’s current policy to produce valves 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 set
up for valve production for the next week and states the he has capacity 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 90 120 110 80 85 95 100 110 90 90 100 110
Customer 105 97 93 72 98 72 53 21 17 6 2 5
Orders

The president of ABC Company has said that he wants to consider using a formal MPS with ATP logic to
try to meet demand more effectively without a large impact on inventory. ABC Company has decided to
use a demand time fence at the end of week 3 and has also found out that its current inventory is 25
units. Assume ABC Company will use the MPS lot size of 300 and that it will produce the first of those
lots in week 1.

Instructions:

a) Develop a master schedule using the information above.


b) A customer has just requested a major order of 45 valves for delivery in week 5. What would
you tell the customer about having such an order? Why? What, if anything, would such an order
do to the operation?

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