You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua (see Problem 13.7) that you can do a better job at aggregate planning than her current staff. She said, “Fine. You do that, and you have a one year contract.” […]
The S&OP team at Kansas Furniture, has received the following estimates of demand requirements: a) Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory, evaluate these two plans on an incremental cost basis: â—†Plan A: Produce at […]
Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast: John’s job is to develop an aggregate plan. The three initial options he wants to evaluate are: ◆            Plan A: a strategy that hires and fires […]
The S&OP team (see Problem 13.9) is considering two more mixed strategies. Using the data in Problem 13.9, compare plans Ă‚Â and Ă‚Â with plans Ă‚Â and Ă‚Â and make a recommendation. â—†Plan C: Keep the current workforce steady at a level producing 1,300 units per month. Subcontract the remainder to meet demand. Assume that 300 units remaining […]
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