Let us now set the desired safety capacity in period 10 to 0 (change Cell AD14 to 1). Now click on the Solver button to reoptimize. The resulting aggregate plan carries more inventory of plastic sheets and a higher capacity of thermoforming presses. All of this comes at a cost and raises the cost per pound of containers produced. The aggregate plan, however, does allow SPC to better deal with demand uncertainty and forecast error.
Copyright 2001, Sunil Chopra