Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Martin pullin

25/12/2020 Client: saad24vbs Deadline: 10 Days

Martin-Pullin Bicycle Corp. (MPBC), located in Dallas, is a wholesale distributor of bicycles and bicycle parts. Formed in 1981 by cousins Ray Martin and Jim Pullin, the firm’s primary retail outlets are located within a 400-mile radius of the distribution center. These retail outlets receive the order from Martin-Pullin within two 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 MPBC 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. MPBC receives all the models from a single manufacturer overseas, and shipment takes as long as four weeks from the time an order is placed. With the cost of communication, paperwork, and customs clearance included, MPBC estimates that each time an order is placed, it incurs a cost of $85. The purchase price paid by MPBC, per bicycle, is roughly 60% of the suggested retail price for all the styles available, and the inventory carrying cost is 2% per month (24% per year) of the purchase price paid by MPBC. The retail price (paid by the customers) for the AirWing is $210 per bicycle.


MPBC is interested in making an inventory plan for 2015. The firm wants to maintain a 95% service level with its customers to minimize the losses on the lost orders. The data collected for the past two years are summarized in the table below. A forecast for AirWing model sales in the upcoming year, 2014 has been developed and will be used to make an inventory plan for MPBC.


Discussion Questions


1. Develop an inventory plan to help MPBC.


2. Discuss ROPs and total costs.


3. How do you handle the fact that the Reorder Point is larger than the EOQ?


4. How can you address demand that is not at the level of the planning horizon?


Demand for AirWing Model


Month 2012 2013 Forecast for2014


January 6 7 8


February 12 14 15


March 24 27 31


April 46 53 59


May 75 86 97


June 47 54 60


July 30 34 39


August 18 21 24


September 13 15 16


October 12 13 15


November 22 25 28


December 38 42 47


Total 343 391 439


Solution:

All the given information for 2014 are the forecasted values. As the forecast often does not give the exact value so to deal with that problem I would suggest to keep 5-10% extra stock than as forecasted. However of we perform our analysis based on the forecasted values the following are the obtained solutions.


Total demand for the year = 439


Monthly forecasted demand = 439/12 = 36.5833.


Standard deviation of monthly demand = 24.5814.


Order cost = $85/order


Retail price = $210/unit


Purchase price = 60% of the retail price = $210*0.60 = $126/unit


Holding cost = 24% per year of the purchase price = $126*0.24 = $30.24/year per unit.


Service level to be maintained = 95%


Lead time = 4 weeks


1) We can use the Economic order quantity to develop the most basic inventory plan. Though as we are using yearly plan here but we can see that the month to month demand changes significantly. This means the developed EOQ for the complete year might not be the best plan to follow however that is the easiest option to choose.


EOQ = ; Number of units cant be fraction


The solution is giving the optimal number of units to order is 50.


2) For 95% service level Z = 1.645 as obtained from the tables. So,


ROP = Average demand during lead time + Z*Sd.


= 36.5833+1.645*24.5814 = 77.0197= 77


Number of annual orders = 439/50 = 8.78 = 9; Number of orders cant be fraction


Annual inventory cost = Annual holding cost + Annual Ordering cost + Annual Purchase cost


=Holding cost *Average inventory + Number of orders*Ordering cost + Total demand*Unit cost


= $30.24*50/2 + 9*$85 + 439*$126


= $56,835.00


3) The ROP is larger than EOQ due to the fact that the monthly demand varies. As for example January demand is 8 and may demand is 97. We can also see that 1st three months has demand less than EOQ so an extra stock is expected to be present each time we order. And also as I suggested, this is a forecasted values so it would be better to keep another 5-10% stock to satisfy customers. That would also help to solve this situation.


4) Here the demand varies which clearly indicates that the demand is not at the planning horizon. And as we developed the EOQ inventory level based on yearly demand which would not same as monthly demand due to variation. To develop more sophisticated inventory plan we can analyze the data more rigorously. We can calculate the seasonality, or smoothen the data and make analysis based on smoother data. Or we can also shorten the interval for EOQ.


Applied Sciences

Architecture and Design

Biology

Business & Finance

Chemistry

Computer Science

Geography

Geology

Education

Engineering

English

Environmental science

Spanish

Government

History

Human Resource Management

Information Systems

Law

Literature

Mathematics

Nursing

Physics

Political Science

Psychology

Reading

Science

Social Science

Home

Blog

Archive

Contact

google+twitterfacebook

Copyright © 2019 HomeworkMarket.com

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

University Coursework Help
Best Coursework Help
Homework Guru
Top Essay Tutor
Helping Hand
Writer Writer Name Offer Chat
University Coursework Help

ONLINE

University Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$102 Chat With Writer
Best Coursework Help

ONLINE

Best Coursework Help

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$100 Chat With Writer
Homework Guru

ONLINE

Homework Guru

Hi dear, I am ready to do your homework in a reasonable price and in a timely manner.

$102 Chat With Writer
Top Essay Tutor

ONLINE

Top Essay Tutor

I have more than 12 years of experience in managing online classes, exams, and quizzes on different websites like; Connect, McGraw-Hill, and Blackboard. I always provide a guarantee to my clients for their grades.

$105 Chat With Writer
Helping Hand

ONLINE

Helping Hand

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$100 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Jack nelson's problem case study solution - Timeline of 100 years war - Problems with the Race Concept - Thesis statement on the drafting of the us constitution - Examples of menu driven program - Electron configuration worksheet w311 - Caroline bingley character analysis - Cengage excel 2016 data files - Lesson plan on prefix and suffix - Research Project II: Project concepts description (150 Pt) - Invictus text dependent questions answers - Nursing management of gastroesophageal reflux disease - Shoe size vs height - Compare Western Hemisphere Maps - Tcas 2 impact factor - Orbit rain sensor adjustment - Discussion - Unit 5 IP DSDD - Goal programming using excel solver - Etymology of my name - Essay - Stitch fix target customer - Dramatic irony in an inspector calls - How to get along with your roommate informative speech - Tp 12863 human factors for aviation basic handbook pdf - Financial accounting - Chem skills worksheet 10 percent error - Hcf mid level extras - A common operating picture ____________ decision making in a crisis - Ethical standards human service professionals - Leadership style of google ceo - Defence approved software list dasl - Rad model advantages and disadvantages - Visual language features english - Ka ba and akh - Vce chemistry practice exams - 21 day challenge - Worcester sixth form college evening classes - Book report template 7th grade - Scope of Practice and Patient’s Healthcare Accessibility - 26740 dequindre rd warren mi 48091 3939 - Theo chocolate strategy formulation and execution - Diseconomies of scale arise primarily because - Pm asmnt 6 - Characters in that was then this is now - How does inclusive language persuade the reader - Retained earnings are occasionally restricted - Allison automatic fault codes - Psychology lecture notes pdf - Eames plastic chair dimensions - Ethical principles in nursing essay - Business market management understanding creating and delivering value pdf - Good luck have fun the rise of esports - Acculturation - Lord capulet quotes to juliet about marriage - Inventory information for part 311 - What is the name of the repeating structure that separates each unfused vertebra? - What does productive resources mean - 20 hand signals in basketball with description - Approved inspection station hobart - Is nick carraway a reliable narrator essay - Which of the following is correct concerning recording journal entries - Solubility chart of ionic compounds - Assignment - Ask homework questions online free - Critical analysis - Nina naustdal net worth - Case Analysis (preparation 02) - Psychologytoday tests psychtests com bin transfer - Strategically thinking, why might management opt for other than the most economical choice? - Mt albert postcode nz - What is the molar mass of acetaminophen c8h9no2 - Elements of a short story graphic organizer pdf - Arawang after school care - Aoa network diagrams use only - Beyond culture 1976 by edward t hall iceberg - Incredible crew suzy sewer princess - Applying Performance Improvement Tools - Energy stored in magnetic field - National 5 chemistry 2014 answers - Michael patrick o neill - Wellness assessment and plan paper - Project last mile coca cola - Selleys oven plus heavy duty gel iga - The planning process phl 320 - The Hyatt Regency Walkway Collapse - Logical fallacy straw man example - What is cost of goods purchased - Calcium determination by permanganate titration - Formal art analysis essay example - Titration curve strong base weak acid - PPT PRESNTION - Lady macbeth sleepwalking scene video - The steamie play glasgow - Stant 12440 fuel cap tester - Eso flipping the coin - Reactance diagram of power system - Amazon com 2019 case study analysis - Curvilinear model of anxiety - Supporting material definition