Download Assignment #2 - Master Scheduling

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?