Purchasing Assignment Essay

Ajman University of Science & Technology College of Business Administration Purchasing & Materials Management Individual Assignment 10 marks Q1. A company wants to develop a level production plan for a family of products. The opening inventory is 500 units, and a decrease to 200 units is expected by the end of the plan.

The demand for each of the periods is given in what follows. All periods have the same number of working days. How much should the company each period? What will be the ending inventories in each period? Do you see any problems with the plan? Total production = 5600 + 200 – 500 = 5300 Planned production each period = 5300/6 = 884 Period |1 |2 |3 |4 |5 |6 |Total | |Forecast Demand |1300 |1200 |800 |600 |800 |900 |5600 | |Planned Production |884 |884 |884 |884 |884 |884 |5304 | |Planned Inventory |500 |84 |-232 |-148 |136 |220 |204 | |Forecast Demand |750 |700 |550 |700 |600 |500 |3800 | |Planned Production |750 |750 |750 |750 |750 |750 |4500 | |Projected Backlog | |Quarter |1 |2 |3 |4 |Total | |Forecast Sales |220 |300 |200 |200 |920 | |Projected Available Balance |270 |250 |150 |150 |150 |970 | |Production Plan |200 |200 |200 |200 |800 | Mailbox A: Lot size = 200 | |Quarter |1 |2 |3 |4 |Total | |Forecast Sales |120 |180 |100 |120 |520 | |Projected Available Balance |120 |200 |20 |120 |0 |460 | |MPS |200 |0 |200 |0 |400 | Mailbox B: Lot size = 200 | |Quarter |1 |2 |3 |4 |Total | |Forecast Sales |100 |120 |100 |80 |400 | |Projected Available Balance |150 |50 |130 |30 |150 |510 | |MPS |0 |200 |0 |200 |400 | Q4. Using the scheduled receipts, calculate the ATP. There are zero units at hand. |Week |1 | | |1 |2 |3 |4 |5 |6 | |Customers (forecasts and orders) |700 |1200 |700 500 |400 |1200 | |Branch warehouses |100 |100 |400 |500 |200 |100 | |Market research | |50 | | |10 | | |Production research |10 | | | | | | |Total |810 |1350 |1100 |1000 |610 |1300 | The safety stock level (inventory cannot fall below the safety stock level), minimum lot size (at least the minimum lot size must be produced when production of the product occurs), and beginning inventory level for the product are: |Minimum Lot Size |Safety Stock |Beginning Inventory | |2000 |500 |1500 | Prepare a six-week MPS for the product. Assume that there is ample production capacity at the plant. |1 |2 |3 |4 |5 |6 | |Total |810 |1350 |1100 |1000 |610 |1300 | |Demand | | | | | | | |Beginning Inventory |1500 |690 |1340 |2240 |1240 |630 | |Production Required |- |2000 |2000 |- |- |2000 | |Ending Inventory |690 |1340 |2240 |1240 |630 |1330 | ———————– Submitted By :

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