Prepare a schedule like that shown in Figure 11.12 for the following situation: The forecast is 80 units for each of the first two periods and 60 units for each of the next three periods. The starting inventory is 20 units. The company uses a chase strategy for determining the production lot size, except there is an upper limit on the lot size of 70 units. Also, the desired safety stock is 10 units.
The ATP quantities are based on maximum allowable production.
A negative projected on-hand can occur.
Committed orders are as follows:
Period Customer Orders
1 ............ 82
2 ............ 80
3 ............ 60
4 ............ 40
5 ............ 20