CHAPTER 6 INVENTORY CONTROL MODELS Internet Homework Problems page, at www.pears
ID: 3282964 • Letter: C
Question
CHAPTER 6 INVENTORY CONTROL MODELS Internet Homework Problems page, at www.pearsonhighered.com/render, for additional homework problems, Problems 6-68 to 6-75 Case Study Martin-Pullin Bicycle Corporation Martin-Pullin Bicycle Corp. (MPBC), located in Dallas, isa wholesale distributor of bicycles and bicycle parts. Form 1981 by cousins Ray Martin and Jim Pullin, the firm's primary The company distributes a wide variety of bicycles. The revenue for the most popular model, and the major source of company, is the A ed in irWing. MPBC receives all the models from within a 400-mile radius of the dis- a single manufacturer overseas, and shipment takes as long as ese retail outlets receive their orders from four weeks from the time an order is placed. With the cost of wo days after notifying the distribution communication, paperwork, and customs clearance included, hat the stock is available. However, if an or MPBC estimates that each time an order is placed, it incurs a ; the cost of $65. The purchase price paid by MPBC, per bicycle tribution center. Th der is not fulfilled by the company, no backorder is placed reta is roughly 60% of the suggested retail price for all the sy lers arrange to get their shipment from other distributors, and MPBC loses that amount of business. available, and the inventory carrying cost is 1% per month (12% per year) of the purchase price paid by MPBC. The retail price Demands for AirWing Model (paid by the customers) for the AirWing is $170 per bicycle. MPBC is interested in making an inventory plan for 2016 The firm wants to maintain a 95% service level with its cus MONTH Janu February March 2014 2015 FORECAST FOR 2016 tomers to minimize the losses on the lost orders. The data panying table. A forecast for AirWing model sales in 2016 has MPBC. Discussion Questions 14 15 collected for the past two years are summarized in the accom 53 been developed and will be used to make an inventory plan for 86 97 May June July August September October November December Total 34 21 15 13 1. Develop an inventory plan to help MPBC. 2. Discuss ROPs and total costs. 3. How can you address demand that is not at the level of the 13 12 16 15 28 planning horizon? Source: Professor Kala Chand Seal, Loyola Marymount University. 38 343 391 439 Internet Case Studies See our Internet home page, at www.pearsonhighered.com/render, for these additional case (1) LaPlace Power and Light: This case involves a public utility in Louisiana and its use tric cables for connecting houses to power lines. of elec (2) Western Ranchman Outfitters ns when the delivery date is sometimes unpredictable. : This case involves managing the inventory of a popular styl of jea (3) Professional Video M suppliers are possible. anagement: This case involves a video system in which discounts from Radio: This case involves ordering FM tuners.Explanation / Answer
ANSWER:
Executive Introduction
Martin-Pullin bike company be a very older assist important whole concord device of bike as 1981. Thye go behind demonstrate mock-up for hand out orders while per clients placement.However the examine stage be yet en route meant in favor of live enhanced seeing to here are stiff confrontation thus if sort is not located the clients will go order toward next dispenser They be alive relying on top of solitary basis of abroad dealer with thier direct time is as well very high. at the present the business has resolute toward go used for a full record plan for the day of 2014, when they wish for to improve their check jet aspect and also the inventory be in charge of As Is pay out are mapped by now future for the better baseline anaylsis
Summary
record carrying cost is 2% for all month, this furnish an occasion to hold the inventory via raise the regroup level. The recent suplier within abroad has a lead point in moment in time of four weeks , so greater reorder with stock guiding opinion can look up their scan level en path for their aim of 95%. To bang the war in good health service rank is anyways required. Order insertion charge be able to live negotiate with the trader proviso they subsist setting up to stockpile extra inventory.So the revised organize charge and better check level can furnish a heartening shock over the in advancement business model. record plan can be succesfuly implemented all the way through superior operational live out Furhter learning on set-up of supplychain in the vein of centre of gracity study be able en route for give a broaded representation used for deliver chain solution plus transporation costs.