Prepare a Master Schedule given the following information: Forecast for each week for an eight-week schedule is 75 units.
The Master Production Schedule (MPS) rule is to schedule production if the projected on-hand inventory would be negative without it.
Committed customer orders are as follows:
WeeWeek CjusCustomer order
1 75
2 53
3 26
4 18
Use a production lot size of 100 units and no beginning inventory.
Week
1 2 3 4 5 6 7 8
Forecast 75 75 75 75 75 75 75 75
Customer Orders 75 53 26 18 0 0 0 0
Projected On-Hand Inventory
MPS
Formulas for Projected On-Hand Inventory
Week 1 = Beginning Inventory + MPS – MAX (Forecast:Customer Order)
Highest number
Weeks 2 – 8 = Previous Week Inventory + MPS – (Forecast: Customer Order)
Because the problem says we cannot have any negative inventory, then we require MPS shipments to come in. When a shipment comes in, it is in lots of 100. In this problem, MPS will be added for Weeks 1,2,3 and Weeks 5, 6, 7. No MPS shipments are expected in Week 4 or Week 8.

Master Production Schedule (MPS)

Week                                              1      2      3      4      5      6      7       8

Forecast Customer Order         75   75    75    75    75    75    75    75

Customer Orders                       75   53    26    18      0      0      0      0

Projected On-Hand Inventory   25   50    75     0     25   50    75      0  

MPS                                           100  100  100     0    100  100  100      0

Explanation:

a) Data and Calculations:

Master Production Schedule (MPS)

Week                                              1      2      3      4      5      6      7       8

Forecast Customer Order         75   75    75    75    75    75    75     75

Customer Orders                       75   53    26    18      0      0      0      0

Projected On-Hand Inventory    

MPS                                            

Formulas for Projected On-Hand Inventory

Week 1 = Beginning Inventory + MPS – MAX (Forecast:Customer Order)

Highest number

Weeks 2 – 8 = Previous Week Inventory + MPS – (Forecast: Customer Order)

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