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 Dem and 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 Profit margin loss
500
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 8 8 9 10 Construct solution here.
Overtime hours per day 2 2 2 2

Beginning Inventory 200.0 423.0 446.0 446.9

Production 2,223.0 2,223.0 2,500.9 2,778.8
Expected Demand 2,000.0 2,200.0 2,500.0 2,650.0
Ending Inventory 423.0 446.0 446.9 575.6

Deviation from Inventory Target 84.5 61.4 39.2 237.2

Employees 48 48 54 60

Cost of Plan
Labor Regular Time $499,200 $499,200 $561,600 $624,000 Employees are paid for 8 hrs work per day.
Labor Overtime $187,200 $187,200 $210,600 $234,000
Hiring and Training $0 $0 $0 $30,000 60 employees are employeed currently.
Layoff $36,000 $0 $0 $0
Inventory Carry Cost $105,750 $111,500 $111,719 $143,906 Carrying cost per year,divided by 4, multiplied by 1,000.
Stockout Cost $0 $0 $0 $0 Basic on negative deviation from target.
Quarter Budget $828,150 $797,900 $883,919 $1,031,906

Total Cost of Plan $3,541,875

 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 8 2 200.0 171.0 153.8 217.2 1.4 450 153.8 171.0 217.2
2 8 2 217.2 171.0 153.8 234.4 1.5 450 153.8 171.0 234.4
3 8 2 234.4 171.0 153.8 251.6 1.6 450 153.8 171.0 251.6
4 8 2 251.6 171.0 153.8 268.8 1.7 450 153.8 171.0 268.8
5 8 2 268.8 171.0 153.8 286.0 1.9 450 153.8 171.0 286.0
6 8 2 286.0 171.0 153.8 303.2 2.0 450 153.8 171.0 303.2
1st 7 8 2 303.2 171.0 153.8 320.4 2.1 450 153.8 171.0 320.4
8 8 2 320.4 171.0 153.8 337.6 2.2 450 153.8 171.0 337.6
9 8 2 337.6 171.0 153.8 354.8 2.2 450 153.8 171.0 354.8
10 8 2 354.8 171.0 153.8 372.0 2.3 450 153.8 171.0 372.0
11 8 2 372.0 171.0 153.8 389.2 2.4 450 153.8 171.0 389.2
12 8 2 389.2 171.0 153.8 406.4 2.4 450 153.8 171.0 406.4
13 8 2 406.4 171.0 153.8 423.6 2.5 450 153.8 171.0 423.6
14 8 2 423.6 171.0 169.2 425.4 2.5 450 153.8 171.0 440.8
15 8 2 440.8 171.0 169.2 442.6 2.6 450 153.8 171.0 458.0
16 8 2 458.0 171.0 169.2 459.8 2.7 450 153.8 171.0 475.2
17 8 2 475.2 171.0 169.2 477.0 2.8 450 153.8 171.0 492.4
18 8 2 492.4 171.0 169.2 494.2 2.9 450 153.8 171.0 509.6
19 8 2 509.6 171.0 169.2 511.4 3.0 450 153.8 171.0 526.8
2nd 20 8 2 526.8 171.0 169.2 528.6 3.1 450 153.8 171.0 544.0
21 8 2 544.0 171.0 169.2 545.8 3.2 450 153.8 171.0 561.2
22 8 2 561.2 171.0 169.2 563.0 3.2 450 153.8 171.0 578.4
23 8 2 578.4 171.0 169.2 580.2 3.2 450 153.8 171.0 595.6
24 8 2 595.6 171.0 169.2 597.4 3.2 450 153.8 171.0 612.8
25 8 2 612.8 171.0 169.2 614.6 3.3 450 153.8 171.0 630.0
26 8 2 630.0 171.0 169.2 631.8 3.3 450 153.8 171.0 647.2
27 9 2 647.2 192.4 192.3 647.3 3.4 450 153.8 192.4 685.8
28 9 2 685.8 192.4 192.3 685.8 3.6 450 153.8 192.4 724.4
29 9 2 724.4 192.4 192.3 724.4 3.8 450 153.8 192.4 762.9
30 9 2 762.9 192.4 192.3 763.0 4.0 450 153.8 192.4 801.5
31 9 2 801.5 192.4 192.3 801.6 4.2 450 153.8 192.4 840.1
32 9 2 840.1 192.4 192.3 840.1 4.4 450 153.8 192.4 878.7
3rd 33 9 2 878.7 192.4 192.3 878.7 4.6 450 153.8 192.4 917.2
34 9 2 917.2 192.4 192.3 917.3 4.7 450 153.8 192.4 955.8
35 9 2 955.8 192.4 192.3 955.9 4.9 450 153.8 192.4 994.4
36 9 2 994.4 192.4 192.3 994.4 5.0 450 153.8 192.4 1,033.0
37 9 2 1,033.0 192.4 192.3 1,033.0 5.2 450 153.8 192.4 1,071.5
38 9 2 1,071.5 192.4 192.3 1,071.6 5.3 450 153.8 192.4 1,110.1
39 9 2 1,110.1 192.4 192.3 1,110.2 5.4 450 153.8 192.4 1,148.7
40 10 2 1,148.7 213.8 203.8 1,158.6 5.7 450 153.8 213.8 1,208.6
41 10 2 1,208.6 213.8 203.8 1,218.5 6.0 450 153.8 213.8 1,268.6
42 10 2 1,268.6 213.8 203.8 1,278.5 6.3 450 153.8 213.8 1,328.5
43 10 2 1,328.5 213.8 203.8 1,338.4 6.6 450 153.8 213.8 1,388.5
44 10 2 1,388.5 213.8 203.8 1,398.4 6.9 450 153.8 213.8 1,448.4
45 10 2 1,448.4 213.8 203.8 1,458.3 7.2 450 153.8 213.8 1,508.4
4th 46 10 2 1,508.4 213.8 203.8 1,518.3 7.4 450 153.8 213.8 1,568.3
47 10 2 1,568.3 213.8 203.8 1,578.2 8.0 450 153.8 213.8 1,628.3
48 10 2 1,628.3 213.8 203.8 1,638.2 8.5 450 153.8 213.8 1,688.2
49 10 2 1,688.2 213.8 203.8 1,698.1 9.1 450 153.8 213.8 1,748.2
50 10 2 1,748.2 213.8 203.8 1,758.1 9.7 450 153.8 213.8 1,808.1
51 10 2 1,808.1 213.8 203.8 1,818.0 10.4 450 153.8 213.8 1,868.1
52 10 2 1,868.1 213.8 203.8 1,878.0 11.1 450 153.8 213.8 1,928.0
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 38,400 14,400 4,177 0 0 36,000 92,977 92,977
2 38,400 14,400 4,508 0 0 0 57,308 150,285
3 38,400 14,400 4,838 0 0 0 57,638 207,923
4 38,400 14,400 5,169 0 0 0 57,969 265,892
5 38,400 14,400 5,500 0 0 0 58,300 324,192
6 38,400 14,400 5,831 0 0 0 58,631 382,823
1st 7 38,400 14,400 6,162 0 0 0 58,962 441,785
8 38,400 14,400 6,492 0 0 0 59,292 501,077
9 38,400 14,400 6,823 0 0 0 59,623 560,700
10 38,400 14,400 7,154 0 0 0 59,954 620,654
11 38,400 14,400 7,485 0 0 0 60,285 680,938
12 38,400 14,400 7,815 0 0 0 60,615 741,554
13 38,400 14,400 8,146 0 0 0 60,946 802,500
14 38,400 14,400 8,477 0 0 0 61,277 863,777
15 38,400 14,400 8,808 0 0 0 61,608 925,385
16 38,400 14,400 9,138 0 0 0 61,938 987,323
17 38,400 14,400 9,469 0 0 0 62,269 1,049,592
18 38,400 14,400 9,800 0 0 0 62,600 1,112,192
19 38,400 14,400 10,131 0 0 0 62,931 1,175,123
2nd 20 38,400 14,400 10,462 0 0 0 63,262 1,238,385
21 38,400 14,400 10,792 0 0 0 63,592 1,301,977
22 38,400 14,400 11,123 0 0 0 63,923 1,365,900
23 38,400 14,400 11,454 0 0 0 64,254 1,430,154
24 38,400 14,400 11,785 0 0 0 64,585 1,494,738
25 38,400 14,400 12,115 0 0 0 64,915 1,559,654
26 38,400 14,400 12,446 0 0 0 65,246 1,624,900
27 43,200 16,200 13,188 0 30,000 0 102,588 1,727,488
28 43,200 16,200 13,930 0 0 0 73,330 1,800,818
29 43,200 16,200 14,672 0 0 0 74,072 1,874,889
30 43,200 16,200 15,413 0 0 0 74,813 1,949,703
31 43,200 16,200 16,155 0 0 0 75,555 2,025,258
32 43,200 16,200 16,897 0 0 0 76,297 2,101,555
3rd 33 43,200 16,200 17,639 0 0 0 77,039 2,178,594
34 43,200 16,200 18,381 0 0 0 77,781 2,256,375
35 43,200 16,200 19,123 0 0 0 78,523 2,334,898
36 43,200 16,200 19,864 0 0 0 79,264 2,414,162
37 43,200 16,200 20,606 0 0 0 80,006 2,494,168
38 43,200 16,200 21,348 0 0 0 80,748 2,574,916
39 43,200 16,200 22,090 0 0 0 81,490 2,656,406
40 48,000 18,000 23,243 0 30,000 0 119,243 2,775,649
41 48,000 18,000 24,396 0 0 0 90,396 2,866,045
42 48,000 18,000 25,549 0 0 0 91,549 2,957,593
43 48,000 18,000 26,701 0 0 0 92,701 3,050,295
44 48,000 18,000 27,854 0 0 0 93,854 3,144,149
45 48,000 18,000 29,007 0 0 0 95,007 3,239,156
4th 46 48,000 18,000 30,160 0 0 0 96,160 3,335,316
47 48,000 18,000 31,313 0 0 0 97,313 3,432,629
48 48,000 18,000 32,466 0 0 0 98,466 3,531,095
49 48,000 18,000 33,619 0 0 0 99,619 3,630,714
50 48,000 18,000 34,772 0 0 0 100,772 3,731,486
51 48,000 18,000 35,925 0 0 0 101,925 3,833,410
52 48,000 18,000 37,077 0 0 0 103,077 3,936,488