Martin-pullin bicycle corp. (mpbc), located in dallas, is a wholesale

Martin-Pullin Bicycle Corp. (MPBC), located in Dallas, is a dispose-of distributor of bicycles and bicycle compatability. Formed in 1981 by cousins Ray Martin and Jim Pullin, the rooted’s elementary dispose-of outlets are located amid a 400-mile radius of the division feeling. These dispose-of outlets admit the classify from Martin-Pullin amid two days behind notifying the division feeling, granted that the store is succorful. However, if an classify is not fulfilled by the assemblage, no backclassify is placed; the dispose-ofers deal to get their shipment from other distributors, and MPBC loses that equality of concern.


The assemblage distributes a spacious difference of bicycles. The most public standard, and the elder spring of fruits to the assemblage, is the AirWing. MPBC admits all the standards from a unique creator overseas, and shipment takes as desire as disgusting weeks from the span an classify is placed. After a while the consume of message, paperwork, and acknowledgment evacuation moderate, MPBC estimates that each span an classify is placed, it incurs a consume of $85. The alienation charge remunerated by MPBC, per bicycle, is roughly 60% of the suggested dispose-of charge for all the styles succorful, and the register carrying consume is 2% per month (24% per year) of the alienation charge remunerated by MPBC. The dispose-of charge (remunerated by the customers) for the AirWing is $210 per bicycle.


MPBC is animated in making an register cunning for 2015. The rooted wants to observe a 95% labor raze after a while its customers to minimize the losses on the elapsed classifys. The axioms calm for the elapsed two years are summarized in the table under. A meet for AirWing standard sales in the upcoming year, 2014 has been familiar and allure be used to produce an register cunning for MPBC.


Discussion Questions

  1. Develop an register cunning to succor MPBC.

  2. Discuss ROPs and sum consumes.

  3. How do you feel the reality that the Reclassify Point is larger than the EOQ?

  4. How can you address claim that is not at the raze of the cunningning horizon?


Demand for AirWing Model

Month 2012 2013 Meet 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

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