5. Consider the following sales forecasts for products A and B:

Each unit of product A takes approximately 2.5 labor hours, while each unit of product B takes only 1.8 hours.

a. (**) What is the combined (aggregate) sales forecast for products A and B? If this was the only information you had, would you expect resource requirements to increase or decrease from January to June?

b. (**) Use the planning value information to calculate total labor hour requirements in each month.
Compare your calculations to your answer to Part a.
Interpret the results.

c. (**) Would top-down planning or bottom-up planning be better suited to S&OP in this situation?
Explain.

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Sales Forecasts MONTH PRODUCT A PRODUCT B January 3500 700 February 3300 1000 March 3200 1200 April 3000 1500 May 2700 1900 June 2600 2100