Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
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. 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 amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter " 0 " wherever required.) Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $2 per engine per month. acklog cost is $90 per engine per month. There should not be a backlog in the last month. Atsume that using overtime is not an ption. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter " 0 " wherever required. 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 amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter " 0 " wherever required.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Management Information Systems

Authors: Ken Laudon, Kenneth C Laudon

10th Edition

0133033090, 9780133033090

More Books

Students also viewed these General Management questions

Question

Briefly define Galens constitutional types.

Answered: 1 week ago