3. Suppose Macarry’s Bicycle managers discover that a major competitor has had to shut down their production for the next three months due to a major fire. The Macarry’s managers fully expect that many of the competitor’s customers will turn to Macarry’s Bicycles to fill their orders during this critical time for them. In fact, one of the competitor’s customers has already asked about an order of 250 of the models for delivery in week 5. What actions should Macarry’s take in this case? Be as specific as possible Common parts (Frame, etc.). Existing inventory 40 Week 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 50 55 60 62 65 65 68 70 75 75 80 85 Cust. Orders 56 52 45 33 70 50 35 60 20 20 0 0 Projected Inven.
MPS 200 200 200 200 ATP 18-speed gear option Existing inventory 25 Week 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 35 39 42 44 46 46 48 49 53 53 56 60 Cust. Orders 37 38 40 33 50 20 25 40 5 5 0 0 Projected Inven.
MPS 150 150 150 150 ATP Straight handle-bars Existing inventory 20 Week 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 15 17 18 19 20 20 21 21 23 23 24 26 Cust. Orders 16 18 20 5 15 22 15 20 5 8 0 0 Projected Inven.
MPS 60 60 60 60 ATP Head and tail light set Existing inventory 5 Week 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 10 11 12 13 13 13 14 14 15 15 16 17 Cust. Orders 2 12 10 8 15 9 7 11 2 1 0 0 Projected Inven.
MPS 30 30 30 30 30 30 ATP Here are the orders to evaluate. Again you are reminded to treat these independently. For example, when you evaluate order number 2, ignore the other order requests (1,3, and 4), and so forth.

a. A customer is asking about an order of 32 of the bicycles for week 3. All 32 are to be 18 speed, 12 are to have straight handle-bars, and 14 are to have the light set.

b. A customer is asking about an order of 60 of the bicycles for week 6. Fifty of them are to be 18 speed, 12 are to have straight handlebars, and 5 to have the light set.

c. A customer is asking about an order of 20 of the bicycles for week 2. All are to be 18 speed, all are to have straight handlebars, and all are to have the light set.

d. A customer is asking about an order of 110 of the bicycles in week 7. Sixty are to be 18 speed, 22 are to be straight handlebars, and 15 are to have the light set.