Problem
Manager TC 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 136 engines per month. Regular output has a cost of $65 per engine. The beginning inventory is zero engines. Overtime has a cost $115 per engine.
Develop a chase plan that matches the forecast and compute the total cost of your plan. Regular production can be less than regular capacity.
|
1 month
|
2 months
|
3 months
|
4 months
|
5 months
|
6 months
|
7 months
|
8 months
|
Total
|
|
90
|
95
|
100
|
105
|
115
|
120
|
130
|
141
|
896
|