Table 11.2
Mutts Amazing Dogs has developed the following demand forecast for The Pitbull, a spicy concoction graced by pepperjack cheese, serrano, habanero, poblano and jalapeno peppers, onion, and a cilantro-lime aioli. They enter the planning period with 20 hotdogs in inventory as shown in Week 0. A few customers have standing orders for hotdogs and they have booked catering events over the next two months. They buy their hotdogs in packages of ten just like you and me.

-Use Table 11.2 to answer this question. The sales manager realizes that he shifted a decimal point for week 3; instead of customer orders for 30, they actually have customer orders for 300. "My bad," he says to no one in particular. The production manager retreats to the sanctity of his office and after dismembering his sales-manager voodoo doll, sets about making things right. What's the proper MPS quantity for week 3 now that the orders are straightened out?
A) 280
B) 270
C) 300
D) 290

Question

Table 11.2
Mutts Amazing Dogs has developed the following demand forecast for The Pitbull, a spicy concoction graced by pepperjack cheese, serrano, habanero, poblano and jalapeno peppers, onion, and a cilantro-lime aioli. They enter the planning period with 20 hotdogs in inventory as shown in Week 0. A few customers have standing orders for hotdogs and they have booked catering events over the next two months. They buy their hotdogs in packages of ten just like you and me.
 
-Use Table 11.2 to answer this question. The sales manager realizes that he shifted a decimal point for week 3; instead of customer orders for 30, they actually have customer orders for 300. "My bad," he says to no one in particular. The production manager retreats to the sanctity of his office and after dismembering his sales-manager voodoo doll, sets about making things right. What's the proper MPS quantity for week 3 now that the orders are straightened out?
A) 280 
B) 270 
C) 300 
D) 290

Quizplus · Accepted Answer

The demand forecast for week 3 is now 300 instead of 30. Subtracting the 20 units in beginning inventory and the 200 units already booked for catering events, the new customer orders for week 3 is 300 - 20 - 200 = 80. The MPS quantity for week 3 should cover the customer orders plus any inventory buildup or safety stock, but not exceed the company's capacity. Therefore, the proper MPS quantity for week 3 is 80 or more. The only answer choice that meets this requirement is C, 300.

Table 11.2 Mutts Amazing Dogs Has Developed the Following Demand Forecast for Forecast