Manager T. C. Downs of Plum Engines, a producer of lawn mowers and leaf blowers, must develop an aggregate plan given th

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Manager T. C. Downs of Plum Engines, a producer of lawn mowersand leaf blowers, must develop an aggregate plan given the forecastfor engine demand shown in the table. The department has a regularoutput capacity of 136 engines per month. Regular output has a costof $65 per engine. The beginning inventory is zero engines.Overtime has a cost of $115 per engine. Month 1 2 3 4 5 6 7 8 TotalForecast 96 135 143 165 125 125 140 143 1,072
a. Develop a chase plan that matches the forecast and computethe total cost of your plan. Regular production can be less thanregular capacity. (Negative amounts should be indicated by a minussign. Leave no cells blank - be certain to enter "0" whereverrequired.) Month 1 2 3 4 5 6 7 8 Total Forecast 96 135 143 165 125125 140 143 1,072 a. Develop a chase plan that matches the forecastand compute the total cost of your plan. Regular production can beless than regular capacity. (Negative amounts should be indicatedby 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 toabsorb fluctuations. Inventory carrying cost is $4 per engine permonth. Backlog cost is $135 per engine per month. There should notbe a backlog in the last month. Set regular production equal to themonthly average of total forecasted demand. Assume that usingovertime is not an option. (Negative amounts should be indicated bya 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.)