Sales and Operations Planning

ABC Manufacturing is developing their 2021 SOP. The sales plan is already developed, using the forecast obtained from Demand Management and is as follows: (the numbers are in 1000s)

(Jan 410) (Feb 385) (Mar 450) (Apr 560) (May 420) (Jun 180) (Jul 140) (Aug 150) (Sep 300) (Oct 145) (Nov 370) (Dec 400)

There is an initial inventory of 100,000 units. There is a required ending inventory of 150,000 units. This means that the operations plan should be appropriately augmented to leave this ending inventory in December 2021.

Use Excel to:

1. Develop a Chase plan

2. Develop a Level plan

For each plan, calculate the end of month inventory (or shortage) level.

Please show formulas as well.