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 Target 338 385 408 338 This is calculated based on 6 weeks of
future forecast demand.
Planning Data Numbers Units of measure Notes
Initial number of employees 60 employees
Emplyees per line 6
Forecast Demand by Quarter (1,000 Case Units)
Standard production rate (each line) 450 Cases per hour
Employee pay rate $20.00 per hour
3,000
Overtime pay rate $30.00 per hour
2,500
Standard hours per shift 7.5 hours
2,000
Maximum overtime per day 2 hours 1,500
Inventory carry cost $1.00 per case (per year) 1,000
Stockout cost $2.40 per case 500 Profit margin loss
Employee hiring and training cost $5,000.00 per employee 0
Employee layoff cost $3,000.00 per employee 1st (1-13) 2nd (14-26) 3rd (27-39) 4th (40-52) 1st (Next Year)

Aggregate Plan Quarter (Week Numbers)

1st (1-13) 2nd (14-26) 3rd (27-39) 4th (40-52) Notes
Lines run 9 9 10 10 Construct solution here.
Overtime hours per day 1 1 2 1

Beginning Inventory 200.0 437.6 475.3 754.0

Production 2,237.6 2,237.6 2,778.8 2,486.3
Expected Demand 2,000.0 2,200.0 2,500.0 2,650.0
Ending Inventory 437.6 475.3 754.0 590.3

Deviation from Inventory Target 99.2 90.6 346.3 251.8

Employees 54 54 60 60

Cost of Plan
Labor Regular Time Employees are paid for 8 hrs work per day.
Labor Overtime
Hiring and Training 60 employees are employeed currently.
Layoff
Inventory Carry Cost Carrying cost per year,divided by 4, multiplied by 1,000.
Stockout Cost Basic on negative deviation from target.
Quarter Budget $0 $0 $0 $0

Total Cost of Plan $0

Simulation Worksheet

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 9 1 200.0 172.1 153.8 218.3 1.4 0.0 0.0
2 9 1 218.3 172.1 153.8 236.6 1.5 0.0 0.0
3 9 1 236.6 172.1 153.8 254.8 1.7 0.0 0.0
4 9 1 254.8 172.1 153.8 273.1 1.8 0.0 0.0
5 9 1 273.1 172.1 153.8 291.4 1.9 0.0 0.0
6 9 1 291.4 172.1 153.8 309.7 2.0 0.0 0.0
1st 7 9 1 309.7 172.1 153.8 328.0 2.1 0.0 0.0
8 9 1 328.0 172.1 153.8 346.2 2.2 0.0 0.0
9 9 1 346.2 172.1 153.8 364.5 2.3 0.0 0.0
10 9 1 364.5 172.1 153.8 382.8 2.4 0.0 0.0
11 9 1 382.8 172.1 153.8 401.1 2.4 0.0 0.0
12 9 1 401.1 172.1 153.8 419.3 2.5 0.0 0.0
13 9 1 419.3 172.1 153.8 437.6 2.6 0.0 0.0
14 9 1 437.6 172.1 169.2 440.5 2.6 0.0 0.0
15 9 1 440.5 172.1 169.2 443.4 2.6 0.0 0.0
16 9 1 443.4 172.1 169.2 446.3 2.6 0.0 0.0
17 9 1 446.3 172.1 169.2 449.2 2.7 0.0 0.0
18 9 1 449.2 172.1 169.2 452.1 2.7 0.0 0.0
19 9 1 452.1 172.1 169.2 455.0 2.7 0.0 0.0
2nd 20 9 1 455.0 172.1 169.2 457.9 2.7 0.0 0.0
21 9 1 457.9 172.1 169.2 460.8 2.7 0.0 0.0
22 9 1 460.8 172.1 169.2 463.7 2.6 0.0 0.0
23 9 1 463.7 172.1 169.2 466.6 2.6 0.0 0.0
24 9 1 466.6 172.1 169.2 469.5 2.5 0.0 0.0
25 9 1 469.5 172.1 169.2 472.4 2.5 0.0 0.0
26 9 1 472.4 172.1 169.2 475.2 2.5 0.0 0.0
27 10 2 475.2 213.8 192.3 496.7 2.6 0.0 0.0
28 10 2 496.7 213.8 192.3 518.1 2.7 0.0 0.0
29 10 2 518.1 213.8 192.3 539.6 2.8 0.0 0.0
30 10 2 539.6 213.8 192.3 561.0 2.9 0.0 0.0
31 10 2 561.0 213.8 192.3 582.5 3.0 0.0 0.0
32 10 2 582.5 213.8 192.3 603.9 3.1 0.0 0.0
3rd 33 10 2 603.9 213.8 192.3 625.3 3.3 0.0 0.0
34 10 2 625.3 213.8 192.3 646.8 3.3 0.0 0.0
35 10 2 646.8 213.8 192.3 668.2 3.4 0.0 0.0
36 10 2 668.2 213.8 192.3 689.7 3.5 0.0 0.0
37 10 2 689.7 213.8 192.3 711.1 3.6 0.0 0.0
38 10 2 711.1 213.8 192.3 732.6 3.6 0.0 0.0
39 10 2 732.6 213.8 192.3 754.0 3.7 0.0 0.0
40 10 1 754.0 191.3 203.8 741.4 3.6 0.0 0.0
41 10 1 741.4 191.3 203.8 728.8 3.6 0.0 0.0
42 10 1 728.8 191.3 203.8 716.2 3.5 0.0 0.0
43 10 1 716.2 191.3 203.8 703.6 3.5 0.0 0.0
44 10 1 703.6 191.3 203.8 691.0 3.4 0.0 0.0
45 10 1 691.0 191.3 203.8 678.4 3.3 0.0 0.0
4th 46 10 1 678.4 191.3 203.8 665.8 3.3 0.0 0.0
47 10 1 665.8 191.3 203.8 653.2 3.3 0.0 0.0
48 10 1 653.2 191.3 203.8 640.6 3.3 0.0 0.0
49 10 1 640.6 191.3 203.8 628.0 3.4 0.0 0.0
50 10 1 628.0 191.3 203.8 615.4 3.4 0.0 0.0
51 10 1 615.4 191.3 203.8 602.8 3.4 0.0 0.0
52 10 1 602.8 191.3 203.8 590.2 3.5 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
Actual Costs

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 18,000 18,000 18,000
2 0 0 0 0 0 0 0 18,000
3 0 0 0 0 0 0 0 18,000
4 0 0 0 0 0 0 0 18,000
5 0 0 0 0 0 0 0 18,000
6 0 0 0 0 0 0 0 18,000
1st 7 0 0 0 0 0 0 0 18,000
8 0 0 0 0 0 0 0 18,000
9 0 0 0 0 0 0 0 18,000
10 0 0 0 0 0 0 0 18,000
11 0 0 0 0 0 0 0 18,000
12 0 0 0 0 0 0 0 18,000
13 0 0 0 0 0 0 0 18,000
14 0 0 0 0 0 0 0 18,000
15 0 0 0 0 0 0 0 18,000
16 0 0 0 0 0 0 0 18,000
17 0 0 0 0 0 0 0 18,000
18 0 0 0 0 0 0 0 18,000
19 0 0 0 0 0 0 0 18,000
2nd 20 0 0 0 0 0 0 0 18,000
21 0 0 0 0 0 0 0 18,000
22 0 0 0 0 0 0 0 18,000
23 0 0 0 0 0 0 0 18,000
24 0 0 0 0 0 0 0 18,000
25 0 0 0 0 0 0 0 18,000
26 0 0 0 0 0 0 0 18,000
27 0 0 0 0 30,000 0 30,000 48,000
28 0 0 0 0 0 0 0 48,000
29 0 0 0 0 0 0 0 48,000
30 0 0 0 0 0 0 0 48,000
31 0 0 0 0 0 0 0 48,000
32 0 0 0 0 0 0 0 48,000
3rd 33 0 0 0 0 0 0 0 48,000
34 0 0 0 0 0 0 0 48,000
35 0 0 0 0 0 0 0 48,000
36 0 0 0 0 0 0 0 48,000
37 0 0 0 0 0 0 0 48,000
38 0 0 0 0 0 0 0 48,000
39 0 0 0 0 0 0 0 48,000
40 0 0 0 0 0 0 0 48,000
41 0 0 0 0 0 0 0 48,000
42 0 0 0 0 0 0 0 48,000
43 0 0 0 0 0 0 0 48,000
44 0 0 0 0 0 0 0 48,000
45 0 0 0 0 0 0 0 48,000
4th 46 0 0 0 0 0 0 0 48,000
47 0 0 0 0 0 0 0 48,000
48 0 0 0 0 0 0 0 48,000
49 0 0 0 0 0 0 0 48,000
50 0 0 0 0 0 0 0 48,000
51 0 0 0 0 0 0 0 48,000
52 0 0 0 0 0 0 0 48,000