Service Description Service Mix

Cable TV Installation
Satellite TV Installation
DSL Installation

Estimated Labor hours per installation 0

Estimated supply cost per installation $0

Month Sales forecast (installations)

January 150
February 175
March 200
Labor Hours Per Installation Supply Costs Per Installation

Labor Hours Per Installation Supply Costs Per Installation

0 $0
0 $0
0 $0
Month Sales forecast
January 150
February 175
March 200
S&OP Spreadsheet

Labor hrs. per unit: 20

Worker hrs. per month: 160
Beginning & ending workforce 100
Beginning & ending inventory 100
Total Plan cost
Production cost per unit $2,000 $20,160,000
Hiring cost $1,750 $8,750
Layoff cost $1,500 $7,500
Holding cost per unit per month $40 $2,338,800
Overtime production cost $2,062 $0
$22,515,050

sales (in
labor sales (in Actual Actual
Month Sales forecast hrs.) workers) workers production
100
January 0 0 105 840
February 0 0 105 840
March 0 0 105 840
April 0 0 105 840
May 0 0 105 840
June 0 0 105 840
July 0 0 105 840
August 0 0 105 840
September 0 0 105 840
October 0 0 105 840
November 0 0 105 840
December 0 0 105 840
0
Totals: 0 0 10080
average= 0
 maximum regular production per month
Allowable overtime production per month

maximum regular production p848 cabinet sets

Allowable overtime production1/10 of regular production

Grand Total

Ending
inventory/b
Hirings Layoffs ack orders
100
5 0 940
0 0 1030
0 0 1870
0 0 2710
0 0 3550
0 0 4390
0 0 5230
0 0 6070
0 0 6910
0 0 7750
0 0 8590
0 0 9430
5
5 58470
848 cabinet sets
1/10 of regular production
S&OP Spreadsheet

Labor hrs. per unit: 20

Worker hrs. per month: 160
Beginning & ending workforce 100
Beginning & ending inventory 100
Total Plan cost
Production cost per unit $2,000 $19,712,000
Hiring cost $1,750 $21,000
Layoff cost $1,500 $18,000
Holding cost per unit per month $40 $3,815,440
Overtime production cost $2,062 $8,804,740
$32,371,180

sales (in
labor sales (in Actual Actual
Month Sales forecast hrs.) workers) workers production
100
January 0 0 94 752
February 0 0 95 760
March 0 0 100 800
April 0 0 100 800
May 0 0 103 824
June 0 0 105 840
July 0 0 106 848
August 0 0 106 848
September 0 0 106 848
October 0 0 106 848
November 0 0 106 848
December 0 0 105 840
0
Totals: 0 0 9856
average= 0
 Grand Total

Allowable Ending
overtime Used Overtime inventory/b
production production Hirings Layoffs ack orders
100
0 6 852
760 1 2372
800 5 3972
800 0 5572
0 3 6396
840 2 8076
62 1 8986
62 0 9896
62 0 10806
32 0 11686
12 0 12546
840 0 1 14226
0 5
4270 12 12 95386
maximum regular production per month 848 cabinet sets
Allowable overtime production per month 1/10 of regular production

J28 is the number I have to layoff to be the same as hiring number

s hiring number
S&OP Spreadsheet

Labor hrs. per unit: 20

Worker hrs. per month: 160
Beginning & ending workforce 100
Beginning & ending inventory 100
Total Plan cost
Production cost per unit $2,000 $19,712,000
Hiring cost $1,750 $21,000
Layoff cost $1,500 $18,000
Holding cost per unit per month $40 $50,240
Overtime production cost $2,062 $474,260
$20,275,500

sales (in
labor sales (in Actual Actual
Month Sales forecast hrs.) workers) workers production
100
January 750 15000 93.75 94 752
February 760 15200 95 95 760
March 800 16000 100 100 800
April 800 16000 100 100 800
May 820 16400 102.5 103 824
June 840 16800 105 105 840
July 910 18200 113.75 106 848
August 910 18200 113.75 106 848
September 910 18200 113.75 106 848
October 880 17600 110 106 848
November 860 17200 107.5 106 848
December 840 16800 105 105 840

Totals: 10080 9856

average= 105
 Grand Total

Allowable Ending
overtime Used Overtime inventory/b
production production Hirings Layoffs ack orders
100
75.2 0 0 6 102
76 0 1 0 102
80 0 5 0 102
80 0 0 0 102
82.4 0 3 0 106
84 0 2 0 106
84.8 62 1 0 106
84.8 62 0 0 106
84.8 62 0 0 106
84.8 32 0 0 106
84.8 12 0 0 106
84 0 0 1 106
0 5
230 12 12 1256
maximum regular production per month 848 cabinet sets
Allowable overtime production per month 1/10 of regular production

J28 is the number I have to layoff to be the same as hiring number

s hiring number
 Machine Labor
Product Line hours/unit hours/unit
Summer toys 0.75 0.25
Winter toys 0.85 2

FORECAST
Month Summer Line Winter Line Aggregate Forecast Machine Hours Labor Hours
January 0 0 0
February 0 0 0
March 0 0 0
April 0 0 0
May 0 0 0
June 0 0 0
July 0 0 0
August 0 0 0
September 0 0 0
October 0 0 0
November 0 0 0
December 0 0 0
series 1 machine hours
series 2 labor hours
S&OP Spreadsheet
Price per cabinet
Labor hrs. per unit:
Worker hrs. per month:
Beginning & ending workforce
Beginning & ending inventory

Production cost per unit

Hiring cost
Layoff cost
Holding cost per unit per month
Overtime production cost

Regular overtime Inventory/back

Month Sales forecast production production orders
January 800 0 150
February 800 0 190
March 824 0 214
April 848 0 262
May 848 0 290
June 848 0 298
July 848 0 236
August 848 0 174
September 848 0 112
October 848 12 92
November 848 12 92
December 848 0 100
 cash
cash inflows outflows net flow cumulative net flow
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
maximum regular production per month 848 cabinet sets
Allowable overtime production per month 1/10 of regular production
S&OP Spreadsheet
Price per cabinet $2,800
Labor hrs. per unit: 20
Worker hrs. per month: 160
Beginning & ending workforce 100
Beginning & ending inventory 100

Production cost per unit

Hiring cost
Layoff cost
Holding cost per unit per month
Overtime production cost

Regular overtime Inventory/back

Month Sales forecast production production orders
January 800 0 400
February 800 0 680
March 824 0 954
April 848 0 1102
May 848 0 1070
June 848 0 958
July 848 0 766
August 848 0 574
September 848 0 382
October 848 12 262
November 848 12 152
December 848 0 100
 cash cumulative
cash inflows outflows net flow net flow
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
$0 $0 $0 $0
maximum regular production per month 848 cabinet sets
Allowable overtime production per month 1/10 of regular production
S&OP Spreadsheet

Labor hrs. per unit: 20

Worker hrs. per month: 160
Beginning & ending workforce 100
Beginning & ending inventory 100
Total Plan cost
Production cost per unit $550 $0
Hiring cost $300 $0
Layoff cost $200 $0
Holding cost per unit per month $4 $0
$0 Grand Total

sales (in
labor sales (in Actual Actual
Month Sales forecast hrs.) workers) workers production Hirings
100
January 500
February 600
March 700
April 800
May 900
June 1000
July 1000
August 1100
September 1200
October 1300
November 1400
December 1500

Totals: 12000
average= #DIV/0!
Grand Total

Ending
inventory/b
Layoffs ack orders
100
S&OP Spreadsheet

Labor hrs. per unit: 20

Worker hrs. per month: 160
Beginning & ending workforce 100
Beginning & ending inventory 100
Total Plan cost
Production cost per unit $550 $0
Hiring cost $300 $0
Layoff cost $200 $0
Holding cost per unit per month $4 $0
$0 Grand Total

sales (in
labor sales (in Actual Actual
Month Sales forecast hrs.) workers) workers production Hirings
100
January 500
February 600
March 700
April 800
May 900
June 1000
July 1000
August 1100
September 1200
October 1300
November 1400
December 1500

Totals: 12000
average= #DIV/0!
Grand Total

Ending
inventory/b
Layoffs ack orders
100
 no offload to 25% offload to
Month Forecast customer customer hours required
January 0 0
February 0 0
March 0 0
April 0 0
May 0 0
June 0 0
July 0 0
August 0 0
September 0 0
October 0 0
November 0 0
December 0 0
Average: 0 0
Lowest: 100 75
Highest: 240 180
Difference: 140 105
4 25%
1 3
 Initial Information
Initial inventory 75
Initial workers 12
Holding cost ($/month) $12.25
Regular wage cost ($/month) $2,500
Overtime hours cost ($/hour) $23.75
Hiring cost $2,400
Layoff cost $1,750
Labor hours/per unit 3.75
Regular hours per month 160
Overtime hours per month 25

Aggregate Planning Jan Feb Mar Apr May Jun

Monthly demand 450 350 400 450 650 700
Regular production 400 400 400 550 500 500
Overtime production 25 25 25 0 100 100
Hires 0 0 1 1 1 0
Layoffs 1 1 0 0 0 0

Inventory Table Jan Feb Mar Apr May Jun

Beginning inventory
Regular production
overtime production
total production
demand
Ending inventory

Worker Information Table Jan Feb Mar Apr May Jun

Hires
Layoffs
Workers

Labor hours table Jan Feb Mar Apr May Jun

Regular hours needed
overtime hours needed
regular hours available
overtime hours available
Problem(s)?

cost table Jan Feb Mar Apr May Jun

regular labor cost
overtime labor cost
hiring cost
layoff cost
inventory cost
total cost

Grand total
#problem(s)