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Jet skis and snowmobiles are assembled by Mobile Incorporated. Because both end - items use the same small engine, you can aggregate demand for the

Jet skis and snowmobiles are assembled by Mobile Incorporated. Because both end-items use the same small engine, you can aggregate demand for the engine assembly. Develop an aggregate plan that uses a level production strategy each quarter and the information that follows. What is the total cost? Assume lost sales are backordered and filled during the next quarter. Summarize the plan, its costs, and consequences using manual computations. Initial Inventory Level =1,000 units Regular Time = $15 Lost Sales Cost/Unit = $24 Inventory Carry Cost per unit = $3 Quarter One Two Three Four Total Beginning Inventory Jet Ski Engine 10,00015,00016,0003,00044,000600 Snowmobile Engine 9,0007,00019,00010,00045,000400 Total Engines 19,00022,00035,00013,00089,0001,000 Average Demand Rate/Quarter 22,000 Units Regular Time Production Rate 22,000 Units

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