A master production schedule shows the beginning inventory is 50 units,the forecast is 80 units,and actual customer orders are 70 units.Using a lot-for-lot rule,what is the MPS quantity for period 1?
A)30
B)80
C)70
D)20

Question

Quizplus · Accepted Answer

The MPS quantity is calculated by subtracting the beginning inventory from the higher of the forecast or actual orders. Here, actual orders (70) are less than the forecast (80), so we use the forecast. MPS quantity = Forecast (80) - Beginning Inventory (50) = 30 units.

A Master Production Schedule Shows the Beginning Inventory Is 50