Schwing produces bicycles. Each bicycle requires two tires.Suppose that the relevant parameters (i.e., order cost, per-itemcost, and per-item inventory cost) for the end-product bicycle areKa = 9, ca = 4, and ha = 1; and the parameters for the tires are Kb= 18, cb = 1 and hb = 0.25. Suppose also that the demand (GR) forbicycles for 3 time buckets is given by D1 = 10, D2 = 10, D3 = 10.Assume that there is neither initial inventory nor scheduledreceipts for either item. To simplify the problem, assume that thetime required to produce both tires and bicycles is negligible,compared
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