Table 11.1
Big Truck Tacos has developed the following forecast of demand and accepted orders for their holiday tacos as they enter the Taco Festival Season. They enter the planning period with 65 holiday tacos in inventory as shown in Week 0.

-Use Table 11.1 to answer this question. In week 1 the inventory manager discovers, much to his horror, that instead of 65 tacos in inventory, they have only 5 tacos. They had already planned to make exactly what they needed, based on the erroneous inventory number of 65 and they can't alter their week 1 schedule. How many tacos do they need to have on their MPS for the second week of production to correct their shortfall, fulfill backorders, and move forward through the rest of the production period?
A) 80
B) 140
C) 100
D) 110

Question

Table 11.1
Big Truck Tacos has developed the following forecast of demand and accepted orders for their holiday tacos as they enter the Taco Festival Season. They enter the planning period with 65 holiday tacos in inventory as shown in Week 0.
 
-Use Table 11.1 to answer this question. In week 1 the inventory manager discovers, much to his horror, that instead of 65 tacos in inventory, they have only 5 tacos. They had already planned to make exactly what they needed, based on the erroneous inventory number of 65 and they can't alter their week 1 schedule. How many tacos do they need to have on their MPS for the second week of production to correct their shortfall, fulfill backorders, and move forward through the rest of the production period?
A) 80 
B) 140 
C) 100 
D) 110

Quizplus · Accepted Answer

The total demand for week 1 and 2 is 140 (70+70), and the accepted orders for week 1 and 2 are 125 (75+50). Since they only have 5 tacos in inventory for week 1, they need to produce an additional 60 tacos (65-5) to fulfill the demand for week 1, which means they need to have 125+60=185 tacos for week 2. Subtracting the 65 tacos they will have left in inventory after week 1, they need to produce 120 more tacos for week 2. Therefore, they need to have 140 (week 2 demand) + 120 (additional tacos needed) = 260 tacos on their MPS for the second week of production.

Table 11.1 Big Truck Tacos Has Developed the Following Forecast of Demand