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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?
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