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Problem 3.4 Production planning and MPS- With short planning horizon
Worldwide Can-Openers, Inc., makes a family of two hand-operated can openers. The production plan is based on months. There are 4 weeks in this month. Opening inventory is 2000 dozen, and it is planned to increase that to 4000 dozen by the end of the month. The MPS is made using weekly periods. The forecast and projected available balance for the two models are shown in spreadsheet. The lot Size for both models is 1000 dozen.
Instructions: A spreadsheet is attached; use the following information to calculate:
1. The production plan for the product family
2. The Master Production Schedule for each end item.
3. Explain the relationship between the production plan and your master production schedule
4. After completing the master schedule for this week discuss why do you think it is important to schedule for individual end items for the MPS and not for the production plan.
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