Question: S&OP Example Demand Forecast: Quarter Demand (units) 1 9,000 2 12,000 3 15,000 4 12,000 Constraints: Costs: Inventory Holding Cost = Start inventory =

S&OP Example Demand Forecast: Quarter Demand (units) 1 9,000 2 12,000 3 15,000 4 12,000 Constraints: Costs: Inventory Holding Cost = Start inventory = 1000 units Ending inventory must be =>1000 units per quarter Max number of Workers = 13 (Assume we start with 12) Regular time capacity = 13,000 units/quarter $2 per unit per quarter Production Costs: Regular time = $7.50/unit Overtime = $10.00/unit Hire/Fire Cost = $550/employee

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