You are the director of supply chain planning over at PlushToysInc Corp. and you are tasked with implementing an aggregate planning strategy.
Your CEO meets with you and says it’s time to roll out the newest stuffed animals for the holiday season.
The company recently completed a sales forecast totaling 7,000 units to satisfy customer demand.
You have two options:
Option 1 – make 6,000 stuffed animals with a marketing budget of $600,000. This makes you work under demand and with less inherent risk.
Option 2 – make 7,000 stuffed animals to meet the forecast with a marketing budget of $700,000.
Look at both options and apply principles from chapter 10 to explain which methods will work best to carry out your directives and why.