To have students take a critical look at how they personally manage their own personal time relative to their goals and priorities.
December 13, 2017
From completing the Managing Your Stress activity, what types of stressors seem to affect you the most?  Do you believe your stressors are common stressors?  Why do you suppose that some stressors affects some people more than others?  What could be the cause of the difference in how be handle stressors?
December 13, 2017

S&OP Practice Problem

S&OP Practice Problem


The table below shows the aggregate sales forecasts for a product family for the year along with the number of working days per month.  The forecasts are shown in dollar amounts ($ million).  Furthermore, the following assumptions are made:

  • Average sales value per unit is $30.
  • Number of units produced per employee per day is 8.
  • Hiring cost per employee is $200.
  • Firing cost per employee is $500.
  • Inventory carrying cost per unit per month is 2%.
  • Beginning and ending inventories are 115,000 units.
  • Beginning labor force is 1,437 persons.
Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Forecast (in millions $) 7.6 8.4 10.2 9 11.8 7 8.6 12.6 14.4 12.8 15.8 11.8
Working Days/Month 20 21 23 20 22 22 10 23 20 22 20 20


  1. Use a time-phased plan in tabular display to show the forecast in units (1,000 units), the projected number of employees per month, the projected inventory per month in 1,000 units, the projected value of inventory in 1,000 $, and the days of supply per month when a chase strategy is used.
  2. Repeat (a) with a level strategy.
  3. Compare the total cost of the chase strategy versus the level strategy.
  4. Design a hybrid strategy that will cost less than either the chase strategy or the level strategy.

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