EXAMPLE: PRODUCTION PLAN STRATEGIES 1. Prepare the production plan using the three basic production plan strategies Suppose the forecasted demand for a product family looks like the table below. Assume the product family is a make to stock family with a starting inventory of 210. Period 1 2 3 Total Forecast (Demand) 175 150 180 165 150 200 1020 Additional Information: For Hybrid production, it is assumed that for the 1" three periods it uses the lowest demand; on the 4th and 5th period it uses 175 forecasted demand; and on the 6th period there is no change on the demand. Requirement: Solve for the following a. Chase production plan Period 1 2 3 5 Total Forecast (Demand) 175 150 180 165 150 200 1020 Level production plan Period 1 3 4 5 6. Total Forecast (Demand) 175 150 180 165 150 200 1020 b. Hybrid production plan Period 1 3 4 5 6. Total Forecast (Demand) 175 150 180 165 150 200 1020 2.

EXAMPLE: PRODUCTION PLAN STRATEGIES 1. Prepare the production plan using the three basic production plan strategies Suppose the forecasted demand for a product family looks like the table below. Assume the product family is a make to stock family with a starting inventory of 210. Period 1 2 3 Total Forecast (Demand) 175 150 180 165 150 200 1020 Additional Information: For Hybrid production, it is assumed that for the 1" three periods it uses the lowest demand; on the 4th and 5th period it uses 175 forecasted demand; and on the 6th period there is no change on the demand. Requirement: Solve for the following a. Chase production plan Period 1 2 3 5 Total Forecast (Demand) 175 150 180 165 150 200 1020 Level production plan Period 1 3 4 5 6. Total Forecast (Demand) 175 150 180 165 150 200 1020 b. Hybrid production plan Period 1 3 4 5 6. Total Forecast (Demand) 175 150 180 165 150 200 1020 2.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

EXAMPLE: PRODUCTION PLAN STRATEGIES
1. Prepare the production plan using the three basic production plan strategies
Suppose the forecasted demand for a product family looks like the table below. Assume the
product family is a make to stock family with a starting inventory of 210.
Period
1
2
3
4
5
6
Total
Forecast
175
150
180
165
150
200
1020
(Demand)
Additional Information: For Hybrid production, it is assumed that for the 1* three periods it
uses the lowest demand; on the 4th and 5th period it uses 175 forecasted demand; and on the 6th
period there is no change on the demand.
Requirement: Solve for the following
a. Chase production plan
Period
1
2
3
4
5
6
Total
Forecast (Demand)
175
150
180
165
150
200
1020
Level production plan
Period
1
2
3
4
5
6
Total
Forecast (Demand)
175
150
180
165
150
200
1020
b. Hybrid production plan
Period
1
4
5
6.
Total
Forecast (Demand)
175
150
180
165
150
200
1020

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