Consider the following partial MPS record. Beginning inventory is 60 units. When should the first MPS shipment be scheduled?

A) period 1
B) period 2
C) period 3
D) period 4
E) period 5

Question

Consider the following partial MPS record. Beginning inventory is 60 units. When should the first MPS shipment be scheduled?

A) period 1 
B) period 2 
C) period 3 
D) period 4 
E) period 5

Quizplus · Accepted Answer

To determine when the first MPS shipment should be scheduled, we need to identify the period where inventory falls below the minimum level. Looking at the partial MPS record, we can see that Demand in period 1 is 70 units, which means there is a shortage of 10 units (60 - 70 = -10). This shortage continues in period 2, where Demand is 50 units and there is a shortage of 20 units (60 - 50 = 10). However, in period 3, we see that projected available inventory is 45 units (60 + 100 - 70 - 35 = 45), which is above the minimum level of 40 units. So, the first MPS shipment should be scheduled for period 2 to cover the shortage and bring inventory back up to a safe level.

Consider the Following Partial MPS Record