The Acme Water Pump Company has a problem. The pumps are fairly expensive to make and store, so the company tends to keep the inventory low. At the same time, it is important to respond to demand quickly, since a customer who wants a water pump is very likely to get one from a competitor if Acme doesn’t have one available immediately. Determine what the projected available balance, master production schedule, and the available to promise is for each of the 12 weeks below. Complete the spreadsheet based on the following information:
Lot size: 300
Currently starting inventory: 25 units
Demand time fence: Weeks 1–3
Period
1
2
3
4
5
6
7
8
9
10
11
12
Forecast
90
115
110
80
85
92
100
108
90
86
100
110
Cust. orders
105
97
93
72
98
72
53
21
17
6
2
5
Proj. Balance (25)
MPS
ATP
After completing the table, write a brief summary of your planning process. Why did you decide on the numbers you did? What were the important factors to consider?