Table 11.1
Big Truck Tacos has developed the following forecast of demand and accepted orders for their holiday tacos as they enter the Taco Festival Season. They enter the planning period with 65 holiday tacos in inventory as shown in Week 0.

-Use Table 11.1 to answer this question. After scoring a terrific deal on tortillas, Big Truck Tacos decides to produce 120 tacos in weeks 1, 2, and 3. If they make tacos in batches of 20, what should their MPS entry be for the fifth week of production?
A) 60
B) 80
C) 100
D) 120

Question

Table 11.1
Big Truck Tacos has developed the following forecast of demand and accepted orders for their holiday tacos as they enter the Taco Festival Season. They enter the planning period with 65 holiday tacos in inventory as shown in Week 0.
 
-Use Table 11.1 to answer this question. After scoring a terrific deal on tortillas, Big Truck Tacos decides to produce 120 tacos in weeks 1, 2, and 3. If they make tacos in batches of 20, what should their MPS entry be for the fifth week of production?
A) 60 
B) 80 
C) 100 
D) 120

Quizplus · Accepted Answer

Since Big Truck Tacos produces 120 tacos in weeks 1, 2, and 3, and they make tacos in batches of 20, the production for the first three weeks is covered. For the fifth week, considering a one-week lag in production to consumption, they would need to produce for the fourth week. Since they produce 120 tacos every three weeks, no production is needed for the fourth week, making the MPS entry for the fifth week the same as the fourth week, which is 60 (3 batches of 20).

Table 11.1 Big Truck Tacos Has Developed the Following Forecast of Demand