Supply Chain Management
You are the director of supply chain planning over at Somy Corporation 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 Polystation video game consoles for the holiday season.
The company recently completed a sales forecast totaling 400,000 units to satisfy customer demand.
You have two options:
Option 1 – make 250,000 consoles with a marketing budget of $30,000,000. This makes you work under demand and with less inherent risk (last year rival company Ninetudo released their competing console Wee to what industry insiders called “disastrous results”).
Option 2 – make 400,000 consoles to meet the forecast with a marketing budget of $40,000,000.
Look at both options and apply principles from chapter 10 to explain which methods will work best to carry out your directives and why