1 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 reguler output capacity of 130 engines per month Reguler output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 per engine Month 2 3 4 Forecast 120 135 140 5 6 7 B 128 125 125 140 135 Total 1,040 Book Click here for the Excel Data Fre Print ference a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Regular production can be less than regular capacity. (Negative amounts should be indicated by a minus sign. Leave no cells blank-be certain to enter "0" wherever required.) Period 2 3 4 5 6 B Forecast 120 135 140 120 125 125 140 Total 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 $90 per engine per month. There should not be a backlog in the last month. Assume that using overtime is not an option. (Negative amounts should be indicated by a minus sign. Leave no cells blank-be certain to enter "0" wherever required.) Period Forecast 120 135 140 120 51116 125 125 140 Total 135 1.040 Output Regular Overtime Subcontract Output Forecast Inventory Beginning Ending Average Backing Costs Output Regular Overtime Subcontract Inventory A B C D E LL F G H MONTH 2 1 2 3 4. 5 6 7 8 Total 3 Forecast 120 135 140 120 125 125 140 135 1,040 4 5 6 7 9 1 2 3 4 5 6 7 0 2 4 5 6 7 8 9 K