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 Step 1

Part 1: Cumulative ATP

To calculate the cumulative Available to Promise (ATP) at


different time periods, we need to consider the beginning
inventory, planned production runs, and committed orders.

Given:
Beginning inventory at time period 0 = 133 units.
Planned production run in week 13 = 200 units.
Part 2: Strategies for New Order

Given the production policies, the following strategies are


feasible:

You can deliver all 120 gyroscopes in week 5 per your current
production plan.
You can deliver all 120 in week 5 by increasing your production
in week 4 to 300 units.
If the customer was willing, you could deliver all 120 in week 7
by increasing your production in week 7 to 210 units.
Explanation:
Inventory refers to the stock of goods or materials that a
company holds for the purpose of resale or production. It
includes raw materials, work-in-progress (unfinished goods), and
finished products that are available for sale or distribution.
Inventory serves as a buffer between the supply and demand of
goods, helping to ensure that a company can meet customer
demands without interruption in production or distribution.

 Step 2
Part 3: Correct Product Tree

The correct product tree for the Kiwi-99 gyroscope is Product


Tree D.

Part 4: Planned Order Release

For this order of 200 gyroscopes in week 13:


o Planned order release for the Kiwi-99: Week 13 - Lead time
(3 weeks) = Week 10.
o Planned order release for the Gimbal Set: Week 10 - Lead
time (2 weeks) = Week 8.
o Planned order release for the Rotor Set: Week 10 - Lead
time (1 week) = Week 9.
o Planned order release for the Base: Week 10 - Lead time (3
weeks) = Week 7.
o Planned order release for the Outer Gimbal: Week 10 - Lead
time (5 weeks) = Week 5.
Part 5: Total Lead Time

Total lead time for the Kiwi-99:


o Inner Gimbal: 5 weeks
o Center Gimbal: 5 weeks
o Outer Gimbal: 5 weeks
o Rotor: 1 week
o Base: 3 weeks
o Spindle: 2 weeks
Total=5+5+5+1+3+2=21weeks.
Explanation:
Lead time refers to the amount of time it takes for a product to
be delivered from the moment an order is placed until it is
received by the customer or made available for use. It
encompasses the entire process, including order processing,
manufacturing (if applicable), transportation, and handling.

 Answer
1. Cumulative ATP:
 Cumulative ATP in time period 4: 593 units
 Cumulative ATP in time period 7: 869 units
 Cumulative ATP in time period 10: 1145 units
2. Feasible Strategies for New Order:
 QGI can deliver all 120 gyroscopes in week 5 per the
current production plan.
 QGI can deliver all 120 in week 5 by increasing
production in week 4 to 300 units.
 If the customer agrees, QGI could deliver all 120 in
week 7 by increasing production in week 7 to 210
units.
3. Correct Product Tree: Product Tree D
4. Planned Order Release:
 Kiwi-99: Week 10
 Gimbal Set: Week 8
 Rotor Set: Week 9
 Base: Week 7
 Outer Gimbal: Week 5
5. Total Lead Time: 21 weeks

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