Question: Problem 11-5 (Static) Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given the

Problem 11-5 (Static) Manager T. C. Downs of Plum

Problem 11-5 (Static) 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. 1 120 2 135 3 140 Month 4 120 129 6 125 7 140 8 135 Total 1,040 Forecast 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.) Period 2 3 5 6 7 8 Total 120 135 140 120 125 125 140 135 1,040 Forecast Output Regular Overtime Subcontract Output - Forecast Inventory Beginning Ending Average Backlog Costs Output Regular Overtime Subcontract Inventory Backorder Total

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