b. 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 $125 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 "O" wherever required. Round average inventory row, Inventory cost row, and Total row values to 1 decimal.) 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 145 engines per month. Regular output has a cost of $60 per engine. The beginning inventory is zero engines. Overtime has a cost of $110 per engine..

1. b. 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 $125 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 "O" wherever required.
Round average inventory row, Inventory cost row, and Total row values to 1 decimal.)
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 145 engines per month. Regular output has a cost of
$60 per engine. The beginning inventory is zero engines. Overtime has a cost of $110 per engine.