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 $75
per engine. The beginning inventory is zero engines. Overtime has a
cost of $90 per engine.

Month

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.)

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 $85 per engine per month. (Negative amounts
should be indicated by a minus sign. Leave no cells blank – be
certain to enter “0” wherever required. Omit the “$” sign in your
response.)