Determine the available-to-promise quantities

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Reference no: EM13922203

1. Determine the available-to-promise (ATP) quantities for each period for Problem 21.

2. Prepare a schedule like that shown in Figure 11.12 for the following situation: The forecast is 80 units for each of the first two periods and 60 units for each of the next three periods. The starting inventory is 20 units. The company uses a chase strategy for determining the production lot size, except there is an upper limit on the lot size of 70 units. Also, the desired safety stock is 10 units. Note: The ATP quantities are based on maximum allowable production and do not include safety stock. Committed orders are as follows:

Period	Customer Orders
1	82
2	80
3	60
4	40
5	20

Week	1	2	3	4
Quantity	200	300	100	150
Standard Times:
Labor Machine	.5 hour/unit 1.0 hour/unit

Week	1	2	3	4
Quantity	200	300	100	150
Labor hours	100	150	50	75
Machine hours	200	300	100	150

Week	1	2	3	4
Labor	50%	75%	25%	37.5%
Machine	80%	120%	40%	60%

Text Book: Operations Management By Santosh Patnaik.

Reference no: EM13922203

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