$1)$ Given the data provided in Table $8-2$ and Table $8-3$ in the textbook for Red Tomato Tools,

use the Excel model to determine the $$optimal$$ aggregate plan for the planning horizon.

There is a requirement for no stockouts at the end of June and at least $500$ units in inventory.

What is the total cost, revenue, and profit for this plan? Which aggregate planning strategy is

employed here?

$2)$ Suppose all the data are exactly the same as the previous problem, except for the demand

forecast is changed to the following:

Month

Demand

Forecast

JAN $1,000$

FEB $3,000$

MAR $3,800$

APR $4,800$

MAY $2,000$

JUN $1,400$

Use the Excel model to determine the $$optimal$$ aggregate plan for the planning horizon.

There is a requirement for no stockouts at the end of June and at least $500$ units in inventory.

What are the total cost, revenue, and profit for this plan? What differences on the Plan Chart

worksheet are apparent with this higher variability demand profile compared to the previous

demand profile? Which aggregate planning strategy is employed here?