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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

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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 normal capacity of 130 engines per month. Normal output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 per engine. Month 8 135 Total 1,840 Forecast 120 135 140 120 125 125 140 a. Develop a chase plan that matches the forecast and compute the total cost of your plan (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Omit the "S" sign in your response.) 7 8 Total 1,040 120 135 140 120 125 125 140 135 Period Forecast Output Regular Overtime Subcontract 130 120 125 125 130 130 1,010 Inventory Beginning Ending Average Backlog Costs: Output Regular 7,200 7,50 7,50 $ 7,200 7,800 450 7,808 900 7,888 900 7,800 450 $ 60,60 2,700 Overtime Subcontract Inventory Backorder Total 8,250 8,700 7,200 7,500 7,50 8,700 8,250 $ 63, 380

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