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PART A Speedy Bicycle Company (SBC) is a wholesale distributor of a wide variety of bicycles and bicycle parts. The most popular model is the Dragonfly, which sells for $170. All manufacturing is done at a plant in China, and shipment takes a month (30 days) from the time an order is placed. The estimated order cost is $75, including customs clearance. SBC's cost per bicycle is 65% of retail price, and inventory carrying cost is 11% per year of SBC's cost. If the company cannot fulfill a retail order, the retailer will get the shipment from another distributor and SBC loses that business. SBC is planning inventory for 2023 based on forecasted demand and wants to maintain a 93% service level to minimize lost orders. The company has 300 working days per year. 2021 Forecasted Demand for the Dragonfly Bicycle Model: F A 15 J 8 M 31 58 M 96 Lead time = Annual demand for 2023= per order 1 Cost per bicycle = $_ Annual holding cost per bicycle = $_ Service level = _% so z = days 5 J 59 J 38 Develop an inventory plan for the Dragonfly model. Canvas responses shown in red. Get organized: Order cost = $_ (round to nearest cent) 2 bicycles 6 A 23 S 16 3 (round to nearest cent) O 14 N 26 D 41

PART A Speedy Bicycle Company (SBC) is a wholesale distributor of a wide variety of bicycles and bicycle parts. The most popular model is the Dragonfly, which sells for $170. All manufacturing is done at a plant in China, and shipment takes a month (30 days) from the time an order is placed. The estimated order cost is $75, including customs clearance. SBC's cost per bicycle is 65% of retail price, and inventory carrying cost is 11% per year of SBC's cost. If the company cannot fulfill a retail order, the retailer will get the shipment from another distributor and SBC loses that business. SBC is planning inventory for 2023 based on forecasted demand and wants to maintain a 93% service level to minimize lost orders. The company has 300 working days per year. 2021 Forecasted Demand for the Dragonfly Bicycle Model: F A 15 J 8 M 31 58 M 96 Lead time = Annual demand for 2023= per order 1 Cost per bicycle = $_ Annual holding cost per bicycle = $_ Service level = _% so z = days 5 J 59 J 38 Develop an inventory plan for the Dragonfly model. Canvas responses shown in red. Get organized: Order cost = $_ (round to nearest cent) 2 bicycles 6 A 23 S 16 3 (round to nearest cent) O 14 N 26 D 41

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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PART A Speedy Bicycle Company (SBC) is a wholesale distributor of a wide variety of bicycles and bicycle parts. The most popular model is the Dragonfly, which sells for $170. All manufacturing is done at a plant in China, and shipment takes a month (30 days) from the time an order is placed. The estimated order cost is $75, including customs clearance. SBC's cost per bicycle is 65% of retail price, and inventory carrying cost is 11% per year of SBC's cost. If the company cannot fulfill a retail order, the retailer will get the shipment from another distributor and SBC loses that business. SBC is planning inventory for 2023 based on forecasted demand and wants to maintain a 93% service level to minimize lost orders. The company has 300 working days per year. 2021 Forecasted Demand for the Dragonfly Bicycle Model: F A M J 15 58 96 J 8 M 31 J per order 1 Inventory Activity 59 38 (round to nearest cent) 2 bicycles 6 A 23 Develop an inventory plan for the Dragonfly model. Canvas responses shown in red. Get organized: Order cost = $_ Cost per bicycle = $_ Annual holding cost per bicycle = $_ Service level = % so z = Lead time = days 5 Annual demand for 2023 = S 16 3 (round to nearest cent) 4 O 14 N 26 D 41
Transcribed Image Text:PART A Speedy Bicycle Company (SBC) is a wholesale distributor of a wide variety of bicycles and bicycle parts. The most popular model is the Dragonfly, which sells for $170. All manufacturing is done at a plant in China, and shipment takes a month (30 days) from the time an order is placed. The estimated order cost is $75, including customs clearance. SBC's cost per bicycle is 65% of retail price, and inventory carrying cost is 11% per year of SBC's cost. If the company cannot fulfill a retail order, the retailer will get the shipment from another distributor and SBC loses that business. SBC is planning inventory for 2023 based on forecasted demand and wants to maintain a 93% service level to minimize lost orders. The company has 300 working days per year. 2021 Forecasted Demand for the Dragonfly Bicycle Model: F A M J 15 58 96 J 8 M 31 J per order 1 Inventory Activity 59 38 (round to nearest cent) 2 bicycles 6 A 23 Develop an inventory plan for the Dragonfly model. Canvas responses shown in red. Get organized: Order cost = $_ Cost per bicycle = $_ Annual holding cost per bicycle = $_ Service level = % so z = Lead time = days 5 Annual demand for 2023 = S 16 3 (round to nearest cent) 4 O 14 N 26 D 41
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