Retail managers understand that inventory control is critical to operating an efficient and profitable business.

Retail managers understand that inventory control is critical to operating an efficient and profitable business.  Reducing on-hand inventory can help control costs. However, managers must avoid running out of inventory, which often results in a significant negative influence on customer satisfaction.  Proper inventory planning is essential for effective inventory control

Instructions:

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1. For this assignment, you will reference the Martin-Pullin Bicycle Corporation case study that begins at the bottom of page 38 titled Managerial Decision Modeling with Spreadsheets, 3/e. Chapter 12 – Inventory Control Models. Click here to access this reading.
2. Based on the information in the case study, course content, and outside research, answer the following instructions/questions, which include the questions at the end of the case study.  The case study questions are reproduced in bold text, below: 
   1. Develop an inventory plan to help the Martin-Pullin Bicycle Corporation. (The inventory plan must make and defend predictions regarding the projected unit purchases & any other relevant factors for the AirWing bicycle model)
   2. Discuss Reorder Points (ROP) and total costs. (Form conclusions about the optimal reorder points & total costs for the projection year 2012, and provide the calculations used to reach your conclusions)
   3. How can you address demand that is not at the level of the planning horizon?  (Compare and contrast actions needed to address demand that is above planned levels, with actions needed to address demand that is below planned levels)
   4. Create a rule, generalization, or principle to address the use of safety stock as a means of avoiding stockouts during periods of variable product demand.
   5. Synthesize your answers to the previous questions to summarize your inventory plan for the company.
   6. Generate and present at least one spreadsheet or chart to support your work by embedding it in the body of the paper or including it in the appendix.

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