*** Problem Set Key — Do Not Post or Distribute ***
Chapter 10: Sales & Operations Planning (Aggregate Planning)
Introduction to Operations & Supply Chain Management (Bozarth & Handfield, 3rd Ed.)
DIRECTIONS To generate the key, plug in the same 4-digit number used to create
the original homework set.
Name: *** KEY ***
Pennsylvania Replicas makes two types of traditional Shaker tables: The Simplicity and the Workman .
The two lines are made in the same facility using the same labor and equipment. In addition, we know that:
* Each Simplicity and Workman table requires, on average, about 3.2 hours of labor.
* Each employee works 160 hours per month, and there is no effective limit on the number of employees
Simplicity Workman
Month Demand Demand
November 750 6750 7500 750.00 0.6 .
December 875 7875 8750 875.00 0.7
January 1000 9000 10000 1000.00 0.8
1250.00
Problem 1
Develop a level S&OP for November – August.
Show aggregated monthly production, workforce and ending inventory levels;
*** KEY ***
Problem 1
Develop a level S&OP for November – August.
Show aggregated monthly production, workforce and ending inventory levels;
monthly hirings and firings; and total hiring, firing, and inventory costs.
To keep it simple, assume you can have fractional units in inventory, and that
you can hire / fire fractional numbers of employees (ex. – 25.5 employees)
Simplicity Workman Total Total Workers Actual Ending
Month Demand Demand Demand hours needed workers Hires Fires Inventory
35 0
November 750 6750 7500 24000 150
250 215 05000
December
875 7875 8750 28000 175
250 0 0 8750
Problem 2
Develop a chase S&OP for November – August. Follow the same
instructions as in Problem 1.
Simplicity Workman Total Total Workers Actual Ending
Month Demand Demand Demand hours needed workers Hires Fires Inventory
35 0
November 750 6750 7500 24000 150
150 115 0 0
December
875 7875 8750 28000 175
175 25 0 0
January 1000 9000 10000 32000 200 200 25 0 0
2
January 1000 9000 10000 32000 200 250 0 0 11250