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Logistics
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
120
110
80
85
95
100
110
90
90
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?
The written summary should be 1-2 paragraphs in length and include an introduction with a thesis statement and a conclusion that summarizes the main ideas. Each paragraph should have a topic sentence supported by 3-5 sentences that offer additional details, explanation, and examples. The essay should be free of errors in grammar, sentence structure, and other mechanics.
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. Acme�s current policy to produce pumps is to produce 100 per week, which is the average demand. Even this is a problem, as the production manager has pointed out, since the equipment is also used for other products and the lot size of 300 would be much more efficient. He said he is currently set up for water pump production for the next week and states he has capacity available to produce 300 at a time next week.
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