UK: +44 748 007-0908, USA: +1 917 810-5386 [email protected]

The Acme Water Pump Company

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?

Ready to Score Higher Grades?