Manager of Plum Engines must develop an aggregate plan given the forecast for engine demand shown in the

table below. The department has a regular output capacity of $152$ engines per period, and the overtime capacity

is $20$ engines per period. Regular output has a cost of $$20$ per engine. Overtime has a cost of $$35$ per engine.

Subcontracting has a cost of $$55$ per engine. Inventory holding and backorder costs are $$5$ and $$25$ per unit per

period, respectively. The beginning inventory is zero engines.

Create a level aggregate plan and calculate total costs for the eight$-$period time horizon. You may plan

overtime production and subcontracting as necessary.

Create a chase aggregate plan and calculate total costs for the eight$-$period time horizon. You may plan

overtime production and subcontracting as necessary.

Feel free to use the tables provided on the next page.

$1-$ Level Strategy:

$2-$ Chase Strategy: