Question: help Problem 1 1 - 5 ( Algo ) Manager T . C . Downs of Plum Engines, a producer of lawn mowers and leaf
help Problem Algo
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 engines per month. Regular output has a cost of $ per engine. The beginning inventory is zero engines. Overtime has a cost of $ per engine.
begintabularcccccccccc
hline & multicolumncMonth
hline & & & & & & & & & Total
hline Forecast & & & & & & & & &
hline
endtabular
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.
Note: Negatlve amounts should be Indlcated by a minus sign. Leave no cells blank be certaln to enter wherever required.
begintabularcccccccccc
hline Period & & & & & & & & & Total
hline Forecast & & & & & & & & &
hline Output & & & & & & & & &
hline Regular & & & & & & & & &
hline Overtime & & & & & & & & &
hline Output Forecast & & & & & & & & &
hline Costs & & & & & & & & &
hline Output & & & & & & & & &
hline Regular & & & & & & & & &
hline Overtime & & & & & & & & &
hline Total & & & & & & & & &
hline
endtabular b Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $ per engine per month. Backlog cost is $ per engine per month. There should not be a backlog in the last month. Set regular production equal to the monthly average of total forecasted demand. Assume that using overtime is not an option.
Note: Negative amounts should be Indicated by a minus sign. Leave no cells blank be certain to enter O wherever required. Round average Inventory row, Inventory cost row, and Total row values to decimal.
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