Question: help Problem 1 1 - 5 ( Algo ) Manager T . C . Downs of Plum Engines, a producer of lawn mowers and leaf

help Problem 11-5(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 145 engines per month. Regular output has a cost of \(\$ 60\) per engine. The beginning inventory is zero engines. Overtime has a cost of \(\$ 110\) per engine.
\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|}
\hline & \multicolumn{9}{|c|}{Month}\\
\hline & 1 & 2 & 3 & 4 & 5 & 6 & 7 & 8 & Total \\
\hline Forecast & 125 & 135 & 143 & 144 & 125 & 165 & 140 & 143 & 1,120\\
\hline
\end{tabular}
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 "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 & 125 & 135 & 143 & 144 & 125 & 165 & 140 & 143 & 1,120\\
\hline Output & & & & & & & & & \\
\hline Regular & & & & & & & & & \\
\hline Overtime & & & & & & & & & \\
\hline Output - Forecast & & & & & & & & & \\
\hline Costs & & & & & & & & & \\
\hline Output & & & & & & & & & \\
\hline Regular & & & & & & & & & \\
\hline Overtime & & & & & & & & & \\
\hline Total & & & & & & & & & \\
\hline
\end{tabular} 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 \(\$ 125\) 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 1 decimal.
 help Problem 11-5(Algo) Manager T. C. Downs of Plum Engines, a

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