Question: Regular oulpul capaxity is 130 units per month. Regular cos. per unit = Kov0. Overtimecost per unit = 600). Beginning nventory is 0 units. We

Regular oulpul capaxity is 130 units per month.

Regular oulpul capaxity is 130 units per month. Regular cos. per unit = Kov0. Overtimecost per unit = 600). Beginning nventory is 0 units. We have the forecast of engine demand shown bedow: a) Develep achasc plan thut matches the forecast. Calvalate the cost of the plan, (5 Marks) b) Develop a level plan that uses inventory to ahsorb fluctuations. Campare the coots of the level plan to the costs of the chase plan fron Part (a). Inventory carryirg cost pet unil pet month =20. Backlog est per unit por month = K9)0. There shoeld be no bosklog in the fingl month. (10 Marks)

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