Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Safety Audit Designing Effective Strategies

Authors: Roger Saunders

1st Edition

0273034480, 978-0273034483

More Books

Students also viewed these Accounting questions