If you are going to use a pan, I would not place the bacon inside it. You want the rendered grease to drip away from the bacon. By being inside the pan, the bacon won't get very much exposure to the smoke. Nothing wrong with using a pan directly below the bacon to collect the grease and by the way, that grease will be very flavorful for using in other recipes. It may not be very healthy, but it will be very flavorful.
On a big smoker, it is not always necessary to flip the bacon, but it is when I cook bacon on the Kettle.