1,000 case units.

Quarter (Week Numbers)

1st (1-13) 2nd (14-26) 3rd (27-39) 4th (40-52) 1st (Next Year) Notes
Forecast Demand 2,000 2,200 2,500 2,650 2,200 Each number is a 13 week forecast.
Ending Inventory This is calculated based on 2 weeks of
338 385 408 338 future forecast demand.
Target

Planning Data Numbers Units of measure Notes

Initial number of
60 employees
employees
Forecast Demand by Quarter (1,000 Case Units)
Emplyees per line 6
Standard production
450 Cases per hour
rate (each line)
3,000
Employee pay rate $20.00 per hour
Overtime pay rate $30.00 per hour 2,500

Standard hours per shift 7.5 hours 2,000

Maximum overtime per
2 hours 1,500
day
1,000
Inventory carry cost $1.00 per case (per year)
Stockout cost $2.40 per case 500 Profit margin loss
Employee hiring and 0
$5,000.00 per employee
training cost 1st (1-13) 2nd (14-26) 3rd (27-39) 4th (40-52) 1st (Next Year)
Employee layoff cost $3,000.00 per employee

Aggregate Plan Quarter (Week Numbers)

1st (1-13) 2nd (14-26) 3rd (27-39) 4th (40-52) Notes
Lines run 10 10 10 10 Construct solution here.
Overtime hours per day 1 1 1 1

Beginning Inventory 200.0 686.3 972.5 958.8

Production 2,486.3 2,486.3 2,486.3 2,486.3
Expected Demand 2,000.0 2,200.0 2,500.0 2,650.0
Ending Inventory 686.3 972.5 958.8 795.0

Deviation from Inventory

Target 347.8 587.9 551.1 456.5
Employees 60 60 60 60

Cost of Plan Remarks

Labor Regular Time $624,000 $624,000 $624,000 $624,000 Employees are paid for 8 hrs work per day.
Labor Overtime $117,000 $117,000 $117,000 $117,000
Hiring and Training $0 $0 $0 $0 60 employees are employeed currently.
Layoff $0 $0 $0 $0
Inventory Carry Cost $171,563 $243,125 $239,688 $198,750 Carrying cost per year,divided by 4, multiplied by 1,000.
Stockout Cost $0 $0 $0 $0
Quarter Budget $912,563 $984,125 $980,688 $939,750

Total Cost of Plan $3,817,125

 Overtime Expected Expected
Lines Beginning Scheduled Forecast Actual Production Actual Demand Actual Actual Ending
Qtr Wk Scheduled
Scheduled
Inventory Production Demand
Ending Weeks-of-
Rate (cases/hour) (1,000 Cases) Production Inventory
(hours) Inventory Supply

1 10 1 200.0 191.3 153.8 237.4 1.5 0.0 0.0

2 10 1 237.4 191.3 153.8 274.8 1.8 0.0 0.0
3 10 1 274.8 191.3 153.8 312.2 2.0 0.0 0.0
4 10 1 312.2 191.3 153.8 349.6 2.3 0.0 0.0
5 10 1 349.6 191.3 153.8 387.0 2.5 0.0 0.0
6 10 1 387.0 191.3 153.8 424.4 2.8 0.0 0.0
1st 7 10 1 424.4 191.3 153.8 461.8 3.0 0.0 0.0
8 10 1 461.8 191.3 153.8 499.2 3.2 0.0 0.0
9 10 1 499.2 191.3 153.8 536.6 3.4 0.0 0.0
10 10 1 536.6 191.3 153.8 574.0 3.6 0.0 0.0
11 10 1 574.0 191.3 153.8 611.4 3.7 0.0 0.0
12 10 1 611.4 191.3 153.8 648.8 3.9 0.0 0.0
13 10 1 648.8 191.3 153.8 686.3 4.1 0.0 0.0
14 10 1 686.3 191.3 169.2 708.3 4.2 0.0 0.0
15 10 1 708.3 191.3 169.2 730.3 4.3 0.0 0.0
16 10 1 730.3 191.3 169.2 752.3 4.4 0.0 0.0
17 10 1 752.3 191.3 169.2 774.3 4.6 0.0 0.0
18 10 1 774.3 191.3 169.2 796.3 4.7 0.0 0.0
19 10 1 796.3 191.3 169.2 818.4 4.8 0.0 0.0
2nd 20 10 1 818.4 191.3 169.2 840.4 5.0 0.0 0.0
21 10 1 840.4 191.3 169.2 862.4 5.0 0.0 0.0
22 10 1 862.4 191.3 169.2 884.4 5.0 0.0 0.0
23 10 1 884.4 191.3 169.2 906.4 5.0 0.0 0.0
24 10 1 906.4 191.3 169.2 928.5 5.0 0.0 0.0
25 10 1 928.5 191.3 169.2 950.5 5.0 0.0 0.0
26 10 1 950.5 191.3 169.2 972.5 5.1 0.0 0.0
27 10 1 972.5 191.3 192.3 971.4 5.1 0.0 0.0
28 10 1 971.4 191.3 192.3 970.4 5.0 0.0 0.0
29 10 1 970.4 191.3 192.3 969.3 5.0 0.0 0.0
30 10 1 969.3 191.3 192.3 968.3 5.0 0.0 0.0
31 10 1 968.3 191.3 192.3 967.2 5.0 0.0 0.0
32 10 1 967.2 191.3 192.3 966.2 5.0 0.0 0.0
3rd 33 10 1 966.2 191.3 192.3 965.1 5.0 0.0 0.0
34 10 1 965.1 191.3 192.3 964.0 5.0 0.0 0.0
35 10 1 964.0 191.3 192.3 963.0 4.9 0.0 0.0
36 10 1 963.0 191.3 192.3 961.9 4.9 0.0 0.0
37 10 1 961.9 191.3 192.3 960.9 4.8 0.0 0.0
38 10 1 960.9 191.3 192.3 959.8 4.8 0.0 0.0
39 10 1 959.8 191.3 192.3 958.7 4.7 0.0 0.0
40 10 1 958.7 191.3 203.8 946.2 4.6 0.0 0.0
41 10 1 946.2 191.3 203.8 933.6 4.6 0.0 0.0
42 10 1 933.6 191.3 203.8 921.0 4.5 0.0 0.0
43 10 1 921.0 191.3 203.8 908.4 4.5 0.0 0.0
44 10 1 908.4 191.3 203.8 895.8 4.4 0.0 0.0
45 10 1 895.8 191.3 203.8 883.2 4.3 0.0 0.0
4th 46 10 1 883.2 191.3 203.8 870.6 4.3 0.0 0.0
47 10 1 870.6 191.3 203.8 858.0 4.3 0.0 0.0
48 10 1 858.0 191.3 203.8 845.4 4.4 0.0 0.0
49 10 1 845.4 191.3 203.8 832.8 4.5 0.0 0.0
50 10 1 832.8 191.3 203.8 820.2 4.5 0.0 0.0
51 10 1 820.2 191.3 203.8 807.6 4.6 0.0 0.0
52 10 1 807.6 191.3 203.8 795.0 4.7 0.0 0.0
169.2
169.2
169.2
169.2
169.2
169.2
5th 169.2
169.2
169.2
169.2
169.2
169.2
169.2
 Regular Overtime Inventory Hiring and
Stockout Total For
Qtr Wk Production Production Carrying Training Layoff Cost Cumulative
Cost Week
Cost Cost Cost Cost
1 0 0 0 0 0 0 0 0
2 0 0 0 0 0 0 0 0
3 0 0 0 0 0 0 0 0
4 0 0 0 0 0 0 0 0
5 0 0 0 0 0 0 0 0
6 0 0 0 0 0 0 0 0
1st 7 0 0 0 0 0 0 0 0
8 0 0 0 0 0 0 0 0
9 0 0 0 0 0 0 0 0
10 0 0 0 0 0 0 0 0
11 0 0 0 0 0 0 0 0
12 0 0 0 0 0 0 0 0
13 0 0 0 0 0 0 0 0
14 0 0 0 0 0 0 0 0
15 0 0 0 0 0 0 0 0
16 0 0 0 0 0 0 0 0
17 0 0 0 0 0 0 0 0
18 0 0 0 0 0 0 0 0
19 0 0 0 0 0 0 0 0
2nd 20 0 0 0 0 0 0 0 0
21 0 0 0 0 0 0 0 0
22 0 0 0 0 0 0 0 0
23 0 0 0 0 0 0 0 0
24 0 0 0 0 0 0 0 0
25 0 0 0 0 0 0 0 0
26 0 0 0 0 0 0 0 0
27 0 0 0 0 0 0 0 0
28 0 0 0 0 0 0 0 0
29 0 0 0 0 0 0 0 0
30 0 0 0 0 0 0 0 0
31 0 0 0 0 0 0 0 0
32 0 0 0 0 0 0 0 0
3rd 33 0 0 0 0 0 0 0 0
34 0 0 0 0 0 0 0 0
35 0 0 0 0 0 0 0 0
36 0 0 0 0 0 0 0 0
37 0 0 0 0 0 0 0 0
38 0 0 0 0 0 0 0 0
39 0 0 0 0 0 0 0 0
40 0 0 0 0 0 0 0 0
41 0 0 0 0 0 0 0 0
42 0 0 0 0 0 0 0 0
43 0 0 0 0 0 0 0 0
44 0 0 0 0 0 0 0 0
45 0 0 0 0 0 0 0 0
4th 46 0 0 0 0 0 0 0 0
47 0 0 0 0 0 0 0 0
48 0 0 0 0 0 0 0 0
49 0 0 0 0 0 0 0 0
50 0 0 0 0 0 0 0 0
51 0 0 0 0 0 0 0 0
52 0 0 0 0 0 0 0 0