Level Capacity Production Plan Problem o 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 steady 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. o Develop a Level capacity plan and compute the total cost of Ending Inventory. MONTH 2 3 7 8. Forecast 120 135 140 120 125 125 140 135

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter5: Network Models
Section5.3: Assignment Models
Problem 17P
icon
Related questions
icon
Concept explainers
Topic Video
Question
10:44 O
3 all 29%
د. اسماء الرحبي ي
18 April, 10:44 am
Level Capacity Production Plan
Problem
o 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 steady
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.
o Develop a Level capacity plan and compute the total
cost of Ending Inventory.
MONTH
1
4
8
Forecast
120
135
140
120
125
125
140
135
Transcribed Image Text:10:44 O 3 all 29% د. اسماء الرحبي ي 18 April, 10:44 am Level Capacity Production Plan Problem o 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 steady 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. o Develop a Level capacity plan and compute the total cost of Ending Inventory. MONTH 1 4 8 Forecast 120 135 140 120 125 125 140 135
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Inventory management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,