Questions 1. Develop an inventory plan to help ZBC. 2. Discuss ROPS and total costs. 3. How can you address demand that is not at the level of the planning horizon? K L M N O P O Case Study 2 (Zhou Bicycle Company) 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 firm's primary retail outlets are located withn a 400 mile radius of the distribution center, These retail outlots recoive the ording from \\( 28 \\mathrm{C} \\) within 2 days after notifying the distribution center, provided that the stock is available. However, if an order is not furilled by the company, no bacharder is placed, the retail ers arrange to get their shipment frum other distributors, and ZBCloses that amount of business. The company diatributes a wide variery of bicycies. The most popular model, and the major source of revenue to the company, is the AirWing. ZDC recoives all the models from a single manufacture in China, and shipment takes as lone as 4 wenk from the time an order is placed, With the cost of coenmunication, paperwork, and cuatans clearance STH per bicycle. collected for the past 2 Vean are summarired in the followine talle. A forecast for AirWire model cales in 2019 has been developed and will be used to make an inventory blan for \\( 7 \\mathrm{c} \\). Omesticns : 1. Develop an inventory plan to help ZBC 2. Discuas fiOfs and total corts. 3. How can you address demand that ia not at the level of the planning horizon? \\begin{tabular}{|l|c|c|c|} \\cline { 2 - 4 } \\multicolumn{1}{c|}{} & \\multicolumn{3}{|c|}{ Demand for Airwing Mode' } \\\\ \\hline Month & \\( \\mathbf{2 0 1 4} \\) & \\( \\mathbf{2 0 1 5} \\) & Forecast for 2016 \\\\ \\hline January & 6 & 7 & 8 \\\\ \\hline February & 12 & 14 & 15 \\\\ \\hline March & 24 & 27 & 31 \\\\ \\hline April & 46 & 53 & 59 \\\\ \\hline May & 75 & 86 & 97 \\\\ \\hline June & 47 & 54 & 60 \\\\ \\hline July & 30 & 34 & 39 \\\\ \\hline August & 18 & 21 & 24 \\\\ \\hline September & 13 & 15 & 16 \\\\ \\hline October & 12 & 13 & 15 \\\\ \\hline November & 22 & 25 & 28 \\\\ \\hline December & 38 & 42 & 47 \\\\ \\hline Total & 343 & 391 & 439 \\\\ \\hline \\end{tabular}