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Operations Management: Processes and Supply Chains, 12th Edition by Larry P. Ritzman, Manoj K. Malhotra, Lee J. Krajewski

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Solved Problem 2

  1. The order policy is to produce end item A in lots of 50 units. Using the data shown in Figure 11.24 and the FOQ lot-sizing rule, complete the projected on-hand inventory and MPS quantity rows. Then, complete the MPS start row by offsetting the MPS quantities for the final assembly lead time. Compute the available-to-promise inventory for item A. Finally, assess the following customer requests for new orders. Assume that these orders arrive consecutively and their affect on ATP is cumulative. Which of these orders can be satisfied without altering the MPS Start quantities?

    A table shows a projected on-hand inventory and MPS quantity rows for Item A.

    Figure 11.24 MPS Record for End Item A

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