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Manager of Plum Engines must develop an aggregate plan given the forecast for engine demand shown in the table below. The department has a regular

Manager of Plum Engines must develop an aggregate plan given the forecast for engine demand shown in the
table below. The department has a regular output capacity of 152 engines per period, and the overtime capacity
is 20 engines per period. Regular output has a cost of $20 per engine. Overtime has a cost of $35 per engine.
Subcontracting has a cost of $55 per engine. Inventory holding and backorder costs are $5 and $25 per unit per
period, respectively. The beginning inventory is zero engines.
Create a level aggregate plan and calculate total costs for the eight-period time horizon. You may plan
overtime production and subcontracting as necessary.
Create a chase aggregate plan and calculate total costs for the eight-period time horizon. You may plan
overtime production and subcontracting as necessary.
Feel free to use the tables provided on the next page.
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