Question:

Suppose your company makes seven models of the same product family using two 8-hour shifts.  The average reject rate is approximately 5%.  The plant manager has just asked you to do aggregate planning for the next six months.  In doing so, you realize that total capacity (in terms of machine-hours and labor-hours that your plant has available) and total demand for the different product lines does not match (i.e., total capacity ¹ total demand).  From an operations management (not marketing) perspective, what 5 questions would you ask the plant manager in order to equalize total capacity with total demand?  HINT: It may be helpful for you to assume that total capacity > total demand or, conversely, that total capacity < total demand.