Up-to-date information about production order status is required to calculate the cost of work in process (WIP).WIP is the inventory of unfinished goods or partially completed products that are still in the production process1.The cost of WIP is the sum of the costs of the materials, labor, and overhead that have been incurred in the production process but have not yet been transferred to the finished goods inventory2. To calculate the cost of WIP, we need to know how much of each production order has been completed and how much remains to be done.This information can be obtained from the production order status, which is a report that shows the current status of each production order in terms of its quantity, start date, end date, completion percentage, and variance3. By using the production order status, we can determine the amount of WIP for each production order and for the entire production process.This can help us monitor and control the production efficiency, profitability, and quality4.

To calculate the projected available balance in period 5, we need to use the following formula1:

Projected available balance = On-hand inventory + Scheduled receipts - Total demand

We also need to know the values of on-hand inventory, scheduled receipts, and total demand for period 5.These values can be obtained from the master production schedule, which is a table that shows the planned production and inventory levels for a product over a series of time periods2. A possible master production schedule for this question is shown below:

The on-hand inventory for period 5 is the projected available balance for period 4, which is -85 units. This means that there is a shortage of 85 units at the end of period 4. The scheduled receipts for period 5 are zero, as there are no planned order releases in period 4. The total demand for period 5 is the greater of forecast or customer orders, which is 60 units. Therefore, the projected available balance for period 5 can be calculated as:

Projected available balance = -85 + 0 - 60 = -145 units

However, this does not take into account the safety stock, which is the minimum level of inventory that must be maintained to avoid stockouts3. The safety stock for this question is given as 25 units. Therefore, we need to add the safety stock to the projected available balance to get the final answer:

Projected available balance with safety stock = -145 + 25 = -120 units

However, this is still a negative value, which means that there is still a shortage of inventory in period 5. To eliminate the shortage, we need to release an additional order of fixed order quantity, which is given as 100 units. Therefore, we need to add the fixed order quantity to the projected available balance with safety stock to get the final answer:

Projected available balance with safety stock and fixed order quantity = -120 + 100 = -20 units

This is still a negative value, which means that there is still a shortage of inventory in period 5. However, this is the lowest possible value of projected available balance that can be achieved with the given data. Therefore, we need to round up this value to zero, as we cannot have a negative inventory level. Therefore, the final answer is:

Projected available balance in period 5 = max(-20,0) =0 units

Safety stock is a type of inventory that is held in excess of the expected demand to protect against uncertainties such as demand variability, lead time variability, or supply disruptions. Safety stock can help to reduce the risk of stockouts, which are situations where the inventory level falls below the demand level and the customer orders cannot be fulfilled. Safety stock can be determined by using different methods, such as statistical models, service level policies, or empirical rules. One of the common criteria that is used to determine safety stock in a distribution center (DC) is the probability of stocking out, which is the likelihood that the inventory level will be insufficient to meet the demand during a replenishment cycle. The probability of stocking out can be calculated by using the normal distribution, assuming that the demand and lead time are normally distributed. The probability of stocking out can also be expressed as the complementary value of the service level, which is the percentage of customer orders that can be satisfied from the available inventory. A higher probability of stocking out implies a lower service level and a lower safety stock. A lower probability of stocking out implies a higher service level and a higher safety stock.

A control chart is a tool that shows process changes and random variation over time. A control chart is a graph that plots data points over time and shows the mean and the upper and lower control limits of the process. The mean is the average value of the data, and the control limits are the boundaries of the normal variation of the process. A control chart can help monitor the stability and performance of a process by detecting any unusual or non-random patterns in the data, such as trends, cycles, or shifts. A control chart can also help identify the sources of variation in the process, whether they are common causes (inherent to the process) or special causes (external factors). A control chart can be used for both variable data (measured on a continuous scale) and attribute data (counted or categorized).

A check sheet is a tool that collects and summarizes data in a structured way. A check sheet is a simple form that records the frequency or occurrence of specific events or problems during a process. A check sheet can help organize and analyze data by showing patterns, trends, or relationships among the data. A check sheet can also help identify potential causes of problems or areas for improvement.

A histogram is a tool that displays the distribution of data in a graphical way. A histogram is a type of bar chart that shows how many times each value or range of values occurs in a data set. A histogram can help describe and compare data by showing the shape, center, spread, and variation of the distribution. A histogram can also help identify outliers, gaps, or clusters in the data.

A Pareto analysis is a tool that prioritizes problems or causes based on their frequency or impact. A Pareto analysis is based on the Pareto principle, which states that 80 percent of the effects come from 20 percent of the causes. A Pareto analysis uses a combination of a bar chart and a line graph to show the relative importance of different factors in a process. The bars represent the frequency or magnitude of each factor, and the line represents the cumulative percentage of the total effect. A Pareto analysis can help focus on the most significant problems or causes and allocate resources accordingly.

The priority rule that is most consistent with the objective of meeting due dates is slack time per operation. Slack time per operation is a priority rule that assigns a priority index to each job based on the ratio of the remaining slack time to the remaining number of operations. Slack time is the difference between the due date and the expected completion time of a job. A lower ratio means a higher priority, as it indicates that the job has less slack time per operation and is more likely to be late. Slack time per operation is a dynamic priority rule, as it updates the priority index after each operation is completed. Slack time per operation can help minimize the number of tardy jobs and the average tardiness of jobs, as it gives preference to the jobs that are closer to their due dates and have more operations left.

First-come-first-served (FCFS) is not a priority rule that is consistent with the objective of meeting due dates. FCFS is a priority rule that processes jobs in the order of their arrival or release times. FCFS is a simple and fair rule, but it ignores the processing times and due dates of jobs. FCFS can result in poor due date performance, as it can delay urgent or short jobs behind long or non-urgent jobs.

Shortest processing time (SPT) is not a priority rule that is consistent with the objective of meeting due dates. SPT is a priority rule that processes jobs in ascending order of their processing times. SPT is an effective rule for minimizing the average flow time and work-in-process inventory of jobs, as it clears out small jobs quickly and reduces congestion in the system. However, SPT does not consider the due dates of jobs, and it can make long or urgent jobs late.

Fewest operations remaining is not a priority rule that is consistent with the objective of meeting due dates. Fewest operations remaining is a priority rule that processes jobs in ascending order of their remaining number of operations. Fewest operations remaining is a rule that can reduce the variability and complexity of jobs, as it tends to complete jobs faster and reduce their flow times. However, fewest operations remaining does not take into account the slack times or due dates of jobs, and it can make urgent or short jobs late.