S&OP Example Demand Forecast: Quarter Demand (units) 9,000 12,000 15,000 12,000 Constraints: Costs: Start inventory = 1000 units Inventory Holding Cost = $2 per unit per quarter Ending inventory must be =>1000 units per quarter Production Costs: Regular time = $7.50/unit Overtime = $10.00/unit Max number of Workers = 13 (Assume we start with 12) Hire/Fire Cost = $550/employee Regular time capacity = 13,000 units/quarter 489060 15000