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Problem 11-5 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 normal capacity of 130 engines per month. Normal output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 per engine. Month 1 2 3 4 5 6 7 8 Total Forecast 120 135 140 120 125 125 140 135 1,040 a. Develop a chase plan that matches the forecast and compute the total cost of your plan.(Negative amounts should be indicated by a minus sign. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.) Period 1 2 3 4 5 6 7 8 Total Forecast 120 135 140 120 125 125 140 135 1,040 Output Regular Overtime Subcontract Output – Forecast Inventory Beginning Ending Average Backlog Costs: Output Regular $ $ Overtime Subcontract Inventory Backorder Total $ $ b. Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $2 per engine per month. Backlog cost is $90 per engine per month.(Negative amounts should be indicated by a minus sign. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.) Period 1 2 3 4 5 6 7 8 Total Forecast 120 135 140 120 125 125 140 135 1,040 Output Regular Overtime Subcontract Output – Forecast Inventory Beginning Ending Average Backlog Costs: Output Regular $ $ Overtime Subcontract Inventory Backorder Total $ $ Join and Ask Questions Available Tutorials to this Question Image academicgeek Rating: Not rated Questions Asked: 0 Tutorials Posted: 7 Blog Posts: 0 Earned: $0.00 ($30.00) Problem 11-5 Manager T. C * This tutorial hasn’t been purchased yet. * Posted on Sep 25, 2015 please … The full tutorial is about 36 characters long. Attachments Problem 11-5.doc (314 K) Copyright © 2010-2015, Ace Your College Classes|All rights reserved. Privacy Policy| Terms of Use| Press| FAQ| Contact us| Affiliates| Site Map| About Us| Official Blog facebookYou TubeTwitter

Problem 11-5

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 normal capacity of 130 engines per month. Normal output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 per engine.

 

Month
1 2 3 4 5 6 7 8 Total
  Forecast 120 135 140 120 125 125 140 135 1,040

 

a.

Develop a chase plan that matches the forecast and compute the total cost of your plan.(Negative amounts should be indicated by a minus sign. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)

 

  Period                1                2                3                4                5                6                7                8             Total
  Forecast 120 135 140 120 125 125 140 135 1,040
  Output
    Regular
    Overtime
    Subcontract
  Output – Forecast
  Inventory
    Beginning
    Ending
    Average
  Backlog









  Costs:
  Output
    Regular $ $
    Overtime
    Subcontract
  Inventory
  Backorder









  Total $ $



















 

b.

Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $2 per engine per month. Backlog cost is $90 per engine per month.(Negative amounts should be indicated by a minus sign. Leave no cells blank – be certain to enter “0” wherever required. Omit the “$” sign in your response.)

 

  Period                1                2                3                4                5                6                7                8             Total
  Forecast 120 135 140 120 125 125 140 135 1,040
  Output
    Regular
    Overtime
    Subcontract
  Output – Forecast
  Inventory
    Beginning
    Ending
    Average
  Backlog









  Costs:
  Output
    Regular $ $
    Overtime
    Subcontract
  Inventory
  Backorder









  Total $ $



















 

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* Posted on Sep 25, 2015

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