Given the Forecast and Booked Orders Shown in the Table

question 54

Essay

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

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Definitions:

Consumer's Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount they actually pay.

Earplugs

Small devices inserted into the ear canal to protect the ears from loud noises, water, or to block out sound for concentration or sleep.

Utility Function

Mathematical model that quantifies satisfaction levels consumers receive from consuming various quantities of goods and services, guiding choices under constraint.

Consumer's Surplus

The gap between what consumers are prepared and capable of spending for a product or service and the aggregate sum they end up paying.