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By the mid 1980’s, JDCW found that its available excess capacity was increasing. To neutralize this problem JDCW attempted to take advantage of the efficiencies of its newly acquired automatic turning machines by bidding on parts offered from within the company. This lead to a direct bid of 275 of the 635 parts offered by John Deere and Company. Out of the possible 275 parts, JDCW was successful in the bidding of only 58 parts, which happened to be low volume parts. This became a concern for JDCW because its aim was to attain the bids that offered the higher volume parts, as to allow it to take advantage of its machine’s high volume efficiency...
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