Aggregate Planning at Red Tomato Tools

We illnstrate aggregate planning methodologies using Red Tomato Tools. Red Tomato s products are sold through retailers in the United States. Red Tomato s operations consist of the assembly of purchased parts into a multipnrpose gardening tool. Because of the limited equipment and space required for its assembly operations. Red Tomato s capacity is determined mainly by the 

For this example, we use a six-month time period because this is a long enough time horizon to illustrate many of the main points of aggregate planning. 

Marginal cost of stockout/backlog 5/unit/month 

In the next two sections, we discuss methodologies commonly used for aggregate planning. (Readers who are unfamiliar with Unear programming can directly jump to Section 8.6.) 

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TABLE 8-9 1 Disaggregating the Aggregate Plan at Red Tomato Tools for Period 1 ... 

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