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 regular output capacity of 130 engines per month. Regular output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 per engine. Forecast 1 120 2 135 3 140 4 120 Month 5 125 6 125 7 140 8 135 Total 1,040

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 regular output capacity of 130 engines per month. Regular output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 per engine. b. Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $2 per engine per month. Backiog cost is $90 per engine per month. There should not be o becklog in the last month. Assume that using overtime is not an option. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter " 0 " wherever required.) \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline Period & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8. & Total \\ \hline Forecast & 120 & 135 & 140 & 120 & 125 & 125 & 140 & 135 & 1,040 \\ \hline \multicolumn{10}{|l|}{ Output } \\ \hline Regular & & & & & & & & & \\ \hline \multicolumn{10}{|l|}{ Overtime } \\ \hline \multicolumn{10}{|l|}{ Subcontract: } \\ \hline \multicolumn{10}{|l|}{ Output - Forecast } \\ \hline \multicolumn{10}{|l|}{ Inventory } \\ \hline \multicolumn{10}{|l|}{ Beginning } \\ \hline \multicolumn{10}{|l|}{ Ending } \\ \hline \multicolumn{10}{|l|}{ Average } \\ \hline \multicolumn{10}{|l|}{ Backlog } \\ \hline \multicolumn{10}{|l|}{ Costs: } \\ \hline \multicolumn{10}{|l|}{ Output } \\ \hline \multicolumn{10}{|l|}{ Regular } \\ \hline \multicolumn{10}{|l|}{ Overtime } \\ \hline \multicolumn{10}{|l|}{ Subcontract } \\ \hline \multicolumn{10}{|l|}{ Inventory } \\ \hline \multicolumn{10}{|l|}{ Backorder } \\ \hline Total & & & & & & & & & \\ \hline \end{tabular}