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Problem 11-18 (Static) Dundas Bike Components Inc. of Wheelville, Illinois, manufactures bicycle wheels in two different sizes for the Big Bike Co. assembly plant
Problem 11-18 (Static) Dundas Bike Components Inc. of Wheelville, Illinois, manufactures bicycle wheels in two different sizes for the Big Bike Co. assembly plant located across town. David Dundas, the firm's owner-manager, has just received Big Bike's order for the next six months. 28-Inch Wheels 24-Inch Wheels Nov. Dec. Jan. Feb. 1,000 units 980 600 700 500 units 500 300 500 Mar. Apr. 1,100 400 1,100 600 Click here for the Excel Data File Currently, Dundas employs 28 full-time, employees, each of whom can produce 50 wheels per month in addition to their other tasks. Because labor is in short supply in the Wheelville area, David would like to develop one pure level-output plan. There is no inventory of finished wheels on hand at present, but David would like to have 300 on hand at the end of April. Big Bike will tolerate back orders of up to 200 units per month. (Round your Average, Overtime, Inventory and Total values to 1 decimal place. Negative amounts should be Indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.) Regular Overtine Part-time $ 50 Hiring $ 300 $ 75 Layoff Subcontract NA Back order $ 400 $1.00 $6.00 NA Inventory In the answer table below, develop a level plan using overtime without hiring additional employees. The overtime should be the same in every month except the last month where the overtime should be zero. (Enter all answers as whole numbers. Negative amounts should be Indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required.)
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