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Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan glven the forecast for engine
Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan glven 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. Click here for the Excel Data File 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 omounts should be Indicated by a minus sign. Leave no celis blonk - be certain to enter " O " wherever b. Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $2 per engine per month Backlog cost is $90 per engine per month. There should not be a backlog in the last month. Assume that using overtime is not an option (Negative omounts should be Indicated by a minus sign. Leave no cells blank - be certain to enter " O " wherever required
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