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Dunas Bike Components Inc. manufactures bicycle wheels in 2 sizes. The firm owner David just received orders for the next 6 months. Nov Dec Jan
Dunas Bike Components Inc. manufactures bicycle wheels in 2 sizes. The firm owner David just received orders for the next 6 months. Nov Dec Jan Feb Mar Apr 20 inch wheels 1000 units 900 600 700 1100 1100 24 inch wheels 500 units 500 300 500 400 600 Currently Dunas employs 28 full time highly skilled employees, each of whom can produce 50 wheels per month, because skilled labor is short in supply David would like a pure level output plan (even regular output). There is no beginning inventory on hand but David would like to have an ending inventory at hand of 300 at end of April. Back orders of up to 200 units per month are allowed if needed. Costs are: Regular $5.00 Overtime $6.50 Subcontracting $8.50 Inventory $1.00 Backorder $10.00 1) Calculate an aggregate plan using the above information. 2) Explain which proactive and which reactive strategies this firm is using
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