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 $140$ engines per month. Regular

output has a cost of $$65$ per engine. The beginning inventory is zero engines. Overtime has a cost of $$115$ 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. $($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 $$3$ per engine per month.

Backlog cost is $$135$ 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. $($Negative amounts should be indicated by

a minus sign. Leave no cells blank $-$ be certain to enter $"0"$ wherever required. Round average inventory row, Inventory cost row,

and Total row values to $1$ decimal.$)$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 $140$ engines per month. Regular

output has a cost of $$65$ per engine. The beginning inventory is zero engines. Overtime has a cost of $$115$ 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. $($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 $$3$ per engine per month.

Backlog cost is $$135$ 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. $($Negative amounts should be indicated by

a minus sign. Leave no cells blank $-$ be certain to enter $"0"$ wherever required. Round average inventory row, Inventory cost row,

and Total row values to $1$ decimal.$)$

hundreds of bolts. The department has a regular output capacity of $210(00)$ bolts per month, except for the seventh month, when

capacity will be $265(00)$ bolts. Regular output has a cost of $$15$ per hundred bolts. Workers can be assigned to other jobs if production

is less than regular. The beginning inventory is zero bolts.

a$.$ Develop a chase plan that matches the forecast and compute the total cost of your plan. Overtime is $$33$ per hundred bolts. 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.$)$

b$.$ Would the total cost be less with full regular production each period with no overtime, but using a subcontractor to handle the

excess above regular capacity at a cost of $$35$ per hundred bolts? Backlogs are not allowed. The inventory carrying cost is $$2$ per

hundred bolts. $($Round your Average inventory values to $1$ decimal place. Negative amounts should be indicated by a minus sign.

Leave no cells blank $-$ be certain to enter $"0"$ wherever required.$)$