• 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 130 engines per month. Regular output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 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. MONTH 1 2 Forecast 120 135 3 140 4 5 6 120 125 125 7 140 8 135

Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
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Chase Production Plan: Example
• 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 130 engines per month. Regular output has a cost
of $60 per engine. The beginning inventory is zero engines. Overtime
has a cost of $90 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.
3.
4.
7
8.
MONTH
1
140
120
125
125
140
135
Forecast
120
135
Chase Production Plan Calculation
Transcribed Image Text:A stock or s+ Туpe Chase Production Plan: Example • 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 130 engines per month. Regular output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $90 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. 3. 4. 7 8. MONTH 1 140 120 125 125 140 135 Forecast 120 135 Chase Production Plan Calculation
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