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Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan forecast for engine demand shown
Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan forecast for engine demand shown in the table. The department has a regular output capacity of 136 engines per month. Regular output has a cost of $65 per engine. The beginning inventory is zero engines. Overtime has a cost of $115 per engine. Forecast Forecast Output Regular Overtime Output - Forecast Costs Output Regular Overtime 1 90 Total 2 95 3 100 90 2 4 105 a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Regular production can be less than regular capacity. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Period 95 Month 3 5 115 100 4 6 120 105 7 130 5 115 8 141 6 Total 896 120 7 130 8 141 Total 896
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