Ch 11, Problem 5a 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. 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. MONTH 1 2 3 4 5 8 6 7 Total 1,040 135 140 120 120 125 125 140 Forecast 135 Ch 11, Problem 5b 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. Backlog cost is $90 per engine per month. There should not be a backlog in the last month. MONTH 7 8 Total 2 1 3 4 5 140 125 135 1,040 125 140 120 135 120 Forecast 12:59 PM 00