Develop a chase plan that matches the forecast


Discussion:

1.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.

 

1

2

3

4

5

6

7

8

Total

Forecast

120

135

140

120

125

125

140

135

1,040

2.Develop a chase plan that matches the forecast and compute the total cost of your plan.

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Operation Management: Develop a chase plan that matches the forecast
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