Manager T C Downs of Plum Engines a producer of lawn mowers

Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the forecast for engine demand shown in the table. The department has a normal capacity of 130 engines per month. Normal output has a cost of $67 per engine. The beginning inventory is zero engines. Overtime has a cost of $75 per engine. Month 1 2 3 4 5 6 7 8 Total Forecast 120 135 140 120 125 125 140 135 1,040 a. Develop a chase plan that matches the forecast and compute the total cost of your plan. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter \"0\" wherever required. Omit the \"$\" sign in your response.) Period 1 2 3 4 5 6 7 8 Total Forecast 120 135 140 120 125 125 140 135 1,040 Output Regular Overtime Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Costs: Output Regular $ $ Overtime Subcontract Inventory Backorder Total $ $ b. Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $2 per engine per month. Backlog cost is $77 per engine per month. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter \"0\" wherever required. Omit the \"$\" sign in your response.) Period 1 2 3 4 5 6 7 8 Total Forecast 120 135 140 120 125 125 140 135 1,040 Output Regular Overtime Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Costs: Output Regular $ $ Overtime Subcontract Inventory Backorder Total $ $

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