DIXI is a company making street bikes. Many of the DIXI customers are expecting or even demanding very short response times, as that is what attracted them to DIXI Bikes in the first place. This condition, in addition to the volatility of overall demand, has put a strain on capacity planning. The company finds that at times there is a lot of idle time (adding significantly to costs), whereas at other times the demand exceeds capacity and hurts customer response time. The production facility has therefore turned to trying to project demand for certain models and actually building a finished goods inventory of those models. This has not proven to be too satisfactory, as it has actually hurt costs and some response times. Reasons include the following