Operations Management: An Integrated Approach, 5th Edition

Formula Review

1. Calculating the projected available quantity:

   Projected available = beginning inventory + MPS shipment

   – forecasted demand

2. Calculating a planning factor for direct labor:

   Planning factor for direct labor

   

3. Calculating a planning factor for machine time:

   Planning factor for machine time

   

4. Calculating projected available quantity when using ATP MPS records:

   Projected available = beginning inventory + MPS shipment

   – the greater of the period's forecast or the actual customer orders promised for delivery that period

5. Calculating ATP quantity in the action bucket:

   ATP_{Action Bucket} = beginning inventory + MPS shipment

   – customer orders before next replenishment

6. Calculating ATP quantity at future replenishment periods: ATP = MPS shipment

   ATP = MPS shipment

   – customer orders between current MPS shipment and next scheduled replenishment