b. Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $3 per engine per month. Backlog cost is $135 per engine per month. There should not be a backlog in the last month. Set regular production equal to the monthly average of total forecasted demand. Assume that using overtime is not an option. (Negative amounts should be indicated be a 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.) Period Forecast Output Regular Output-Forecast Inventory Beginning Ending Average Backlog Costs Output Regular Inventory Backorder Total 90 95 100 105 115 128 134 145 Total 912

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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help:) thank you!! two parts

b. Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $3 per engine per month.
Backlog cost is $135 per engine per month. There should not be a backlog in the last month. Set regular production equal to the
monthly average of total forecasted demand. Assume that using overtime is not an option. (Negative amounts should be indicated by
a 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.)
Period
Forecast
Output
Regular
Output-Forecast
Inventory
Beginning
Ending
Average
Backlog
Costs
Output
Regular
Inventory
Backorder
Total
90
2
95
100
105
115
128
134
8
145
Total
912
Transcribed Image Text:b. Compare the costs to a level plan that uses inventory to absorb fluctuations. Inventory carrying cost is $3 per engine per month. Backlog cost is $135 per engine per month. There should not be a backlog in the last month. Set regular production equal to the monthly average of total forecasted demand. Assume that using overtime is not an option. (Negative amounts should be indicated by a 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.) Period Forecast Output Regular Output-Forecast Inventory Beginning Ending Average Backlog Costs Output Regular Inventory Backorder Total 90 2 95 100 105 115 128 134 8 145 Total 912
DS
Problem 11-5 (Algo)
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 regular output capacity of 140 engines per month. Regular
output has a cost of $65 per engine. The beginning inventory is zero engines. Overtime has a cost of $115 per engine.
Forecast
Forecast
Output
Regular
Overtime
Output-Forecast
Costs
Output
Regular
Overtime
90
Total
2
95
3
100
90
a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Regular production can be less than
regular capacity. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever
required.)
Period
2
Month
95
4
105
5
115
100
6
128
105
7
134
5
8
145
115
Total
912
128
7
134
8
145
Total
912
Check my
Transcribed Image Text:DS Problem 11-5 (Algo) 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 regular output capacity of 140 engines per month. Regular output has a cost of $65 per engine. The beginning inventory is zero engines. Overtime has a cost of $115 per engine. Forecast Forecast Output Regular Overtime Output-Forecast Costs Output Regular Overtime 90 Total 2 95 3 100 90 a. Develop a chase plan that matches the forecast and compute the total cost of your plan. Regular production can be less than regular capacity. (Negative amounts should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Period 2 Month 95 4 105 5 115 100 6 128 105 7 134 5 8 145 115 Total 912 128 7 134 8 145 Total 912 Check my
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