Nearly all tires are tubless-ready, and all are manufactured in-house and priced in the $30 to $35 range. The range includes five gravel, one city/touring, and two road tires, nearly all of which are available in two colors and a variety of sizes. Three years after closing its doors, American Classic is back and has re-entered the cycling market with a diverse line of eight fresh tire models.

Respond to demand in a controlled manner.American Classic is back with a fresh range of eight new tire models in 700C and 650B sizes, all of which are made in-house and priced at just $30 to $35.

Maintain needed control over inventories.

Use a good forecast as a basis for planning.

Determine corporate policy regarding controllable variables.

The following are the guidelines for aggregate planning:

Constant production rates can be met by using subcontractors to provide extra capacity.

Subcontract: Upward shift in demand from low level.

Vary inventory levels: Demand fluctuations can be met by large amount of inventory.

Vary the hours worked: Maintain the stable workforce, but permit idle time when there is a slack and permit overtime (OT) when demand is peak.

Vary the size or the workforce: Output is controlled by hiring or laying off workers in proportion to changes in demand.

These controllable variables constitute pure strategies by which fluctuations in demand and uncertainties in production activities can be accommodated by using the following steps: The alternatives available to the company are inventories, back ordering or subcontracting of items.

Hence, the employment and use of overtime (OT) are the two relevant variables. More labor effort is required to generate higher volume of output. The variables of the production system are labor, materials and capital. Aggregate planning seeks the best combination to minimize costs. Therefore, fluctuations in demand must be met by varying labor and inventory schedule. Within this range, the physical facilities are assumed to –10 be fixed for the planning period. It is the process of planning the quantity and timing of output over the intermediate time horizon (3 months to one year). Aggregate planning is an intermediate term planning decision.

Amazon aggregate planning