Given the Forecast and Booked Orders Shown in the Table

question 65

Multiple Choice

Given the forecast and booked orders shown in the table, and a beginning inventory of 120, what is the ATP for period 4? The company operates with a lot size of 144. $$\begin{array} { | l | c | c | c | c | } \hline \text { Period } & 1 & 2 & 3 & 4 \\\hline \text { Forecasted Demand } & 500 & 450 & 400 & 600 \\\hline \text { Booked Orders } & 520 & 400 & 325 & 450 \\\hline \text { Projected ending inventory } & & & & \\\hline \text { Master production schedule } & & & & \\\hline \text { Available to Promise } & & & & \\\hline\end{array}$$

• A)92
• B)108
• C)126
• D)144

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or a normal operating cycle, whichever is longer.

Short-term Notes

Debt securities with shorter maturities, typically less than one year, used by companies to meet immediate financing needs.

Depreciation Calculations

Methods used to allocate the cost of a tangible asset over its useful life, reflecting its decrease in value.

Shareholder Reporting

The process of providing financial and operational information to a company's shareholders, typically on a quarterly and annual basis.