Question: I wonder what is the correct answer. There are many different answers saying $45,750, $46,298, $44,700. I am confused. Problem Dundas Bike Components Inc. of

I wonder what is the correct answer. There are

I wonder what is the correct answer. There are many different answers saying $45,750, $46,298, $44,700. I am confused.

Problem 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. 1,000 units 500 units Dec. 900 500 Jan. 600 300 Feb. 700 500 Mar. 1,100 400 Apr. 1,100 600 a. Under what circumstances will it be possible 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 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. Show your level plan in tabular form. The amount produced using overtime should be the same except for the last month. c. Calculate the total annual cost of your plan using these costs: $300 Regular Overtime Part-time $5.00 $7.50 $400 Hiring Layoff Inventory Rack order NA $1.00 Subcontract NA $6.00

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!