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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 Forecast Sales Projected Available Balance MPS 1 200 2 300 3 300 4 200 5 150 6 150 300 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 Forecast Projected Available Balance Production Plan Model A Week Forecast Projected Available Balance Production Plan 1 3000 2 3500 3 3500 4 4000 Total 1 2000 2 2000 3 2500 4 2000 Total 2000 1500 Model B Week Forecast Projected Available Balance Production Plan 1 1000 2 1500 3 1000 4 2000 Total 500 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 Forecast 90 Customer 105 Orders 2 120 97 3 110 93 4 80 72 5 85 98 6 95 72 7 100 53 8 110 21 9 90 17 10 90 6 11 100 2 12 110 5 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?