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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 engines per period, and the overtime capacity
is engines per period. Regular output has a cost of $ per engine. Overtime has a cost of $ per engine.
Subcontracting has a cost of $ per engine. Inventory holding and backorder costs are $ and $ per unit per
period, respectively. The beginning inventory is zero engines.
Create a level aggregate plan and calculate total costs for the eightperiod time horizon. You may plan
overtime production and subcontracting as necessary.
Create a chase aggregate plan and calculate total costs for the eightperiod 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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