Question: Consider the following sales forecasts for products A and B

Consider the following sales forecasts for products A and B:

Each unit of product A takes approximately 2.5 labor hours, while each unit of product B takes only 1.8 hours.
a. What is the combined (aggregate) sales forecast for products A and B? If this were the only information you had, would you expect resource requirements to increase or decrease from January to June?
b. Use the planning value information to calculate total labor hour requirements in each month. Compare your calculations to your answer to part a. Interpret the results.
c. Would top-down planning or bottom-up planning be better suited to S&OP in this situation? Explain.


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  • CreatedApril 10, 2015
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