ZBC is a wholesale distributor of bicycles and bicycle parts situated at place S. The retail outlets of the company are within 400 mile radius to the distribution centers. The distribution center passes order to its retail outlets within 2 days after the order is placed by the retail outlets provided the stocks are available. When there are no stocks, no backorder is taken and the outlets have to arrange the products from some other distributors and the company loses its order. The company distributes wide range of bicycles and air wing is the popular brand which is the major source of revenue. The company receives all of its order from single manufacturer and shipment takes 4 weeks from the time of order. ZBC estimates the cost for ordering is $65. The purchase price is 60% of the retail price and carrying cost is 1% per month of the purchase price. The retail price of air wing is $170. Month 2011 2012 Forecast for 2013 Jan 6 7 8 Feb 12 14 15 Mar 24 27 31 Apr 46 53 59 May 75 86 97 Jun 47 54 60 Jul 30 34 39 Aug 18 21 24 Sep 13 15 16 Oct 12 13 15 Nov 22 25 28 Dec 38 42 47 Total 343 391 439 The demand for the past two year is shown in the table and the company wants to make inventory plan for 2016. The company wants to maintain 95% service level to minimize the loss. To develop: Inventory plan for company ZBC.

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Answer 1

Question

Chapter 12, Problem 1.1CS

Summary Introduction

Introduction:

ZBC is a wholesale distributor of bicycles and bicycle parts situated at place S. The retail outlets of the company are within 400 mile radius to the distribution centers. The distribution center passes order to its retail outlets within 2 days after the order is placed by the retail outlets provided the stocks are available.

When there are no stocks, no backorder is taken and the outlets have to arrange the products from some other distributors and the company loses its order. The company distributes wide range of bicycles and air wing is the popular brand which is the major source of revenue.

The company receives all of its order from single manufacturer and shipment takes 4 weeks from the time of order. ZBC estimates the cost for ordering is $65. The purchase price is 60% of the retail price and carrying cost is 1% per month of the purchase price. The retail price of air wing is $170.

Month 2011 2012 Forecast for 2013
Jan 6 7 8
Feb 12 14 15
Mar 24 27 31
Apr 46 53 59
May 75 86 97
Jun 47 54 60
Jul 30 34 39
Aug 18 21 24
Sep 13 15 16
Oct 12 13 15
Nov 22 25 28
Dec 38 42 47
Total 343 391 439

The demand for the past two year is shown in the table and the company wants to make inventory plan for 2016. The company wants to maintain 95% service level to minimize the loss.

To develop: Inventory plan for company ZBC.

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Zhou Bicycle Company (ZBC), located in Seattle, is a wholesale distributor of bicycles and bicycle parts. Formed in 1981 by University of Washington Professor Yong-Pin Zhou, the firm’s primary retail outlets are located within a 400-mile radius of the distribution center. These retail outlets receive the order from ZBC within 2 days after notifying the distribution center, provided that the stock is available. However, if an order is not fulfilled by the company, no backorder is placed; the retailers arrange to get their shipment from other distributors, and ZBC loses that amount of business. The company distributes a wide variety of bicycles. The most popular model, and the major source of revenue to the company, is the AirWing. ZBC receives all the models from a single manufacturer in China, and shipment takes as long as 4 weeks from the time an order is placed. With the cost of communication, paperwork, and customs clearance included, ZBC estimates that each time an…

Describe inventory accuracy and cycle counting ?

Zhou Bicycle Company Zhou Bicycle Company (ZBC), located in Seattle, is a whole- sale distributor of bicycles and bicycle parts. Formed in 1981 by University of Washington Professor Yong-Pin Zhou, the firm's primary retail outlets are located within a 400-mile radius of the distribution center. These retail outlets receive the order The company distributes a wide variety of bicycles. The most popular model, and the major source of revenue to the company, is the Air Wing. ZBC receives all the models from a single manufacturer in China, and shipment takes as long as 4 weeks from the time an order is placed. With the cost of com- munication, paperwork, and customs clearance included, ZBC estimates that each time an order is placed, it incurs a cost of $65. The purchase price paid by ZBC, per bicycle, is roughly 60% of the suggested retail price for all the styles available, and the inventory carrying cost is 1% per month ( 12% per year) of the purchase price paid by ZBC. The retail price…

Answer 2

Question

Chapter 12, Problem 1.1CS

Summary Introduction

Introduction:

ZBC is a wholesale distributor of bicycles and bicycle parts situated at place S. The retail outlets of the company are within 400 mile radius to the distribution centers. The distribution center passes order to its retail outlets within 2 days after the order is placed by the retail outlets provided the stocks are available.

When there are no stocks, no backorder is taken and the outlets have to arrange the products from some other distributors and the company loses its order. The company distributes wide range of bicycles and air wing is the popular brand which is the major source of revenue.

The company receives all of its order from single manufacturer and shipment takes 4 weeks from the time of order. ZBC estimates the cost for ordering is $65. The purchase price is 60% of the retail price and carrying cost is 1% per month of the purchase price. The retail price of air wing is $170.

Month 2011 2012 Forecast for 2013
Jan 6 7 8
Feb 12 14 15
Mar 24 27 31
Apr 46 53 59
May 75 86 97
Jun 47 54 60
Jul 30 34 39
Aug 18 21 24
Sep 13 15 16
Oct 12 13 15
Nov 22 25 28
Dec 38 42 47
Total 343 391 439

The demand for the past two year is shown in the table and the company wants to make inventory plan for 2016. The company wants to maintain 95% service level to minimize the loss.

To develop: Inventory plan for company ZBC.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 12, Problem 1.1CS

Summary Introduction

Introduction:

ZBC is a wholesale distributor of bicycles and bicycle parts situated at place S. The retail outlets of the company are within 400 mile radius to the distribution centers. The distribution center passes order to its retail outlets within 2 days after the order is placed by the retail outlets provided the stocks are available.

When there are no stocks, no backorder is taken and the outlets have to arrange the products from some other distributors and the company loses its order. The company distributes wide range of bicycles and air wing is the popular brand which is the major source of revenue.

The company receives all of its order from single manufacturer and shipment takes 4 weeks from the time of order. ZBC estimates the cost for ordering is $65. The purchase price is 60% of the retail price and carrying cost is 1% per month of the purchase price. The retail price of air wing is $170.

Month 2011 2012 Forecast for 2013
Jan 6 7 8
Feb 12 14 15
Mar 24 27 31
Apr 46 53 59
May 75 86 97
Jun 47 54 60
Jul 30 34 39
Aug 18 21 24
Sep 13 15 16
Oct 12 13 15
Nov 22 25 28
Dec 38 42 47
Total 343 391 439

The demand for the past two year is shown in the table and the company wants to make inventory plan for 2016. The company wants to maintain 95% service level to minimize the loss.

To develop: Inventory plan for company ZBC.

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 1.1CS

Summary Introduction

Introduction:

ZBC is a wholesale distributor of bicycles and bicycle parts situated at place S. The retail outlets of the company are within 400 mile radius to the distribution centers. The distribution center passes order to its retail outlets within 2 days after the order is placed by the retail outlets provided the stocks are available.

When there are no stocks, no backorder is taken and the outlets have to arrange the products from some other distributors and the company loses its order. The company distributes wide range of bicycles and air wing is the popular brand which is the major source of revenue.

The company receives all of its order from single manufacturer and shipment takes 4 weeks from the time of order. ZBC estimates the cost for ordering is $65. The purchase price is 60% of the retail price and carrying cost is 1% per month of the purchase price. The retail price of air wing is $170.

Month 2011 2012 Forecast for 2013
Jan 6 7 8
Feb 12 14 15
Mar 24 27 31
Apr 46 53 59
May 75 86 97
Jun 47 54 60
Jul 30 34 39
Aug 18 21 24
Sep 13 15 16
Oct 12 13 15
Nov 22 25 28
Dec 38 42 47
Total 343 391 439

The demand for the past two year is shown in the table and the company wants to make inventory plan for 2016. The company wants to maintain 95% service level to minimize the loss.

To develop: Inventory plan for company ZBC.

Expert Solution & Answer

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Check out a sample textbook solution

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Answer 5

Chapter 12, Problem 1.1CS

Summary Introduction

Introduction:

ZBC is a wholesale distributor of bicycles and bicycle parts situated at place S. The retail outlets of the company are within 400 mile radius to the distribution centers. The distribution center passes order to its retail outlets within 2 days after the order is placed by the retail outlets provided the stocks are available.

When there are no stocks, no backorder is taken and the outlets have to arrange the products from some other distributors and the company loses its order. The company distributes wide range of bicycles and air wing is the popular brand which is the major source of revenue.

The company receives all of its order from single manufacturer and shipment takes 4 weeks from the time of order. ZBC estimates the cost for ordering is $65. The purchase price is 60% of the retail price and carrying cost is 1% per month of the purchase price. The retail price of air wing is $170.

Month 2011 2012 Forecast for 2013
Jan 6 7 8
Feb 12 14 15
Mar 24 27 31
Apr 46 53 59
May 75 86 97
Jun 47 54 60
Jul 30 34 39
Aug 18 21 24
Sep 13 15 16
Oct 12 13 15
Nov 22 25 28
Dec 38 42 47
Total 343 391 439

The demand for the past two year is shown in the table and the company wants to make inventory plan for 2016. The company wants to maintain 95% service level to minimize the loss.

To develop: Inventory plan for company ZBC.

Answer 6

Chapter 12, Problem 1.1CS

Summary Introduction

Introduction:

ZBC is a wholesale distributor of bicycles and bicycle parts situated at place S. The retail outlets of the company are within 400 mile radius to the distribution centers. The distribution center passes order to its retail outlets within 2 days after the order is placed by the retail outlets provided the stocks are available.

When there are no stocks, no backorder is taken and the outlets have to arrange the products from some other distributors and the company loses its order. The company distributes wide range of bicycles and air wing is the popular brand which is the major source of revenue.

The company receives all of its order from single manufacturer and shipment takes 4 weeks from the time of order. ZBC estimates the cost for ordering is $65. The purchase price is 60% of the retail price and carrying cost is 1% per month of the purchase price. The retail price of air wing is $170.

Month 2011 2012 Forecast for 2013
Jan 6 7 8
Feb 12 14 15
Mar 24 27 31
Apr 46 53 59
May 75 86 97
Jun 47 54 60
Jul 30 34 39
Aug 18 21 24
Sep 13 15 16
Oct 12 13 15
Nov 22 25 28
Dec 38 42 47
Total 343 391 439

The demand for the past two year is shown in the table and the company wants to make inventory plan for 2016. The company wants to maintain 95% service level to minimize the loss.

To develop: Inventory plan for company ZBC.

Answer 7

Chapter 12, Problem 1.1CS

Summary Introduction

Introduction:

ZBC is a wholesale distributor of bicycles and bicycle parts situated at place S. The retail outlets of the company are within 400 mile radius to the distribution centers. The distribution center passes order to its retail outlets within 2 days after the order is placed by the retail outlets provided the stocks are available.

When there are no stocks, no backorder is taken and the outlets have to arrange the products from some other distributors and the company loses its order. The company distributes wide range of bicycles and air wing is the popular brand which is the major source of revenue.

The company receives all of its order from single manufacturer and shipment takes 4 weeks from the time of order. ZBC estimates the cost for ordering is $65. The purchase price is 60% of the retail price and carrying cost is 1% per month of the purchase price. The retail price of air wing is $170.

Month 2011 2012 Forecast for 2013
Jan 6 7 8
Feb 12 14 15
Mar 24 27 31
Apr 46 53 59
May 75 86 97
Jun 47 54 60
Jul 30 34 39
Aug 18 21 24
Sep 13 15 16
Oct 12 13 15
Nov 22 25 28
Dec 38 42 47
Total 343 391 439

The demand for the past two year is shown in the table and the company wants to make inventory plan for 2016. The company wants to maintain 95% service level to minimize the loss.

To develop: Inventory plan for company ZBC.

Answer 8

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Answer 11

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Solution Summary: The author explains that ZBC is a wholesale distributor of bicycles and bicycle parts situated at place S.

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Month	2011	2012	Forecast for 2013
Jan	6	7	8
Feb	12	14	15
Mar	24	27	31
Apr	46	53	59
May	75	86	97
Jun	47	54	60
Jul	30	34	39
Aug	18	21	24
Sep	13	15	16
Oct	12	13	15
Nov	22	25	28
Dec	38	42	47
Total	343	391	439