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. 20-Inch Wheels 24-Inch Wheels Nov. Dec. Jan. Feb. Mar. Apr. 1,000 units 900 600 700 1,100 1,100 Regular Overtime 500 units 500 300 500 dhe hear 400 600 a. Under what circumstances will it be possible for David to develop just one aggregate plan rather than two (one for each size wheel)? Explain in two to three sentences without calculations. b. Currently Dundas employs 28 full-time, highly skilled employees, each of whom can produce 50 wheels per month. Because skilled labor is in short supply in the Wheelville area, David would like to develop a pure level-output plan. There is no inventory of finished wheels on hand at pres- ent, but David would like to have 300 on hand at the end of April. Big Bike will tolerate back or- ders of up to 200 units per month. Show your level plan in tabular form. c. Calculate the total annual cost of your plan using these costs: Part-time " Subcontract (GADS) Y6 $5.00 Hiring $300 $7.50 Layoff $400 NA Inventory $1.00 ΝΑ Backorder $6.00
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. 20-Inch Wheels 24-Inch Wheels Nov. Dec. Jan. Feb. Mar. Apr. 1,000 units 900 600 700 1,100 1,100 Regular Overtime 500 units 500 300 500 dhe hear 400 600 a. Under what circumstances will it be possible for David to develop just one aggregate plan rather than two (one for each size wheel)? Explain in two to three sentences without calculations. b. Currently Dundas employs 28 full-time, highly skilled employees, each of whom can produce 50 wheels per month. Because skilled labor is in short supply in the Wheelville area, David would like to develop a pure level-output plan. There is no inventory of finished wheels on hand at pres- ent, but David would like to have 300 on hand at the end of April. Big Bike will tolerate back or- ders of up to 200 units per month. Show your level plan in tabular form. c. Calculate the total annual cost of your plan using these costs: Part-time " Subcontract (GADS) Y6 $5.00 Hiring $300 $7.50 Layoff $400 NA Inventory $1.00 ΝΑ Backorder $6.00
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Transcribed Image Text: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.
20-Inch Wheels
24-Inch Wheels
Nov.
Dec.
Jan.
Feb.
Mar.
Apr.
1,000 units
900
600
700
1,100
1,100
Regular
Overtime
Part-time
.
Subcontract
500 units
500
300
500
dire
a. Under what circumstances will it be possible for David to develop just one aggregate
plan rather than two (one for each size wheel)? Explain in two to three sentences without
calculations.
$5.00
$7.50
NA
ΝΑ
Show Transcribed Text
400
time 150 812
b. Currently Dundas employs 28 full-time, highly skilled employees, each of whom can produce 50
wheels per month. Because skilled labor is in short supply in the Wheelville area, David would
like to develop a pure level-output plan. There is no inventory of finished wheels on hand at pres-
ent, but David would like to have 300 on hand at the end of April. Big Bike will tolerate back or-
ders of up to 200 units per month. Show your level plan in tabular form.
c. Calculate the total annual cost of your plan using these costs:
600
Hiring
Layoff
Inventory
Backorder
$400
$1.00
$6.00
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