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.

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?

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MONTH2011 2012 FORECAST FOR 2013 January February 12 24 2 46 53 75 86 47 54 30 34 14 15 March April May June July August 2 October 12 13 December 3 42 September13 15 November 2225 Total 343 391 439