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.
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Develop an inventory plan to help ZBC.
Discuss ROPs and total costs.
How can you address demand that is not at the level of the planninghorizon?
