Consider the following sales forecasts for products A and B:

 

	Sales Forecasts
MONTH	PRODUCT A	PRODUCT B
January	3,500	700
February	3,300	1,000
March	3.200	1,200
April	3.000	1,500
May	2,/00	1900
June	2,600	2,100

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.

Answer rating: 100% (QA)

In this problem production planning for two products is evaluated a To find the total sales forecast ... View the full answer