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.
Nov. Dec. Jan. Feb. Mar. Apr.
20-Inch Wheels 1,000 units 900 600 700 1,100 1,100
24-Inch Wheels 500 units 500 300 500 400 600
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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 $ 50 Hiring $ 300
Overtime $ 75 Layoff $ 400
Part-time NA Inventory $ 1.00
Subcontract NA Back order $ 6.00
Hire additional employee(s) and produce the same amount in every month using regular time:
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Dundas Bike Components Inc. of Wheelville, Illinois, manufactures bicycle wheels in two different si...
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