Forecast 130 135 130 135 130 135 135 134 1,064 Output Regular 130 135 130 135 130 135 135 134 1,064 Overtime 0 0 0 0 0 0 0 0 0 Output - Forecast 0 0 0 0 0 0 0 0 Costs Output Regular Overtime $8,450 8,775 8,450 0 0 0 8,775 0 Total $8,450 8,775 8,450 8,775 8,450 8,775 8,775 8,710 0 0 0 0 8,450 8,775 8,775 8,710 69,160 0 $ 69,160 b. Compare the costs to a level plan that uses Inventory to absorb fluctuations. Inventory carrying cost is $3 per engine per month. Backlog cost is $135 per engine per month. There should not be a backlog in the last month. Set regular production equal to the monthly average of total forecasted demand. 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 "O" wherever required. Round average Inventory row, Inventory cost row, and Total row values to 1 decimal.) Period Forecast Answer is complete but not entirely correct. 2 3 5 6 7 Total 130 135 130 135 130 135 135 134 1,064 Output Regular 133 133 133 133 133 133 133 Output - Forecast 3 -2 3 -2 3 -2 2 133 -1 1,064 Inventory Beginning 0 3 9 4 2 9 3 9 Ending 3 2 3 2 3 2 0 0 Average 0.0 0.00 0.0 x 0.0 0 0 0 0 0.0 0 0.0 x 0 0.00 x 0 Backlog Costs Output Regular $ 8,450 8,775 8,450 8,775 8,450 8,775 x 8,775 8,710 Inventory 69,160 0.0 0.0 0.0 Backorder 0 0 0.0 x 0 0.0 0 0.0 0 0.0 0.0 0 0 0 S Total 8,450.0 8,775.0 8,475.0 8,450.0 8,775.0 8,775.0 x 8,775.0 8,710.0 69,160