What is the aggregate sales forecast for products

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Reference no: EM132199810

Use the following sales forecast data for products A and B to answer the questions below.

Month Sales Forecast Product A Sales Forecast Product B

January 3,500 700

February 3,300 1,100

March 3,200 1,300

April 3,000 1,400

May 2,700 2,000

June 2,600 2,200

Each unit of product A takes 2.5 labor hours to make, while each unit of product B takes 0.8 labor hours to make.

a) What is the aggregate sales forecast for products A & B? Based only on this information, would you expect resource requirements to increase or decrease from January to June?

b) Use the planning value information (labor hours required per unit) to calculate total labor hour requirements per month. Do the resources requirements match your expectation from part a? Why or why not?

c) Would you recommend top-down or bottom-up planning in this situation? Why?

Reference no: EM132199810

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