NAMA : PENY PUSPAYANTI

NRP : 6032211042

2. Inventory Control
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 company distributes a wide variety of bicycles. The most popular model, and the major
source of revenue to the company, is the AirWing. ZBC receives all the models from a single
manufacturer in China, and shipment takes as long as 4 weeks from the time an order is placed.
With the cost of communication, paperwork, and customs clearance included, ZBC estimates
that each time an order is placed, it incurs a cost of $65. The purchase price paid by ZBC, per
bicycle, is roughly 60% of the suggested retail price for all the styles available, and the inventory
carrying cost is 1% per month (12% per year) of the purchase price paid by ZBC. The retail price
(paid by the customers) for the AirWing is $170 per bicycle. ZBC is interested in making an
inventory plan for 2016. The firm wants to maintain a 95% service level with its customers to
minimize the losses on the lost orders. The data collected for the past 2 years are summarized
in the following table. A forecast for AirWing model sales in 2016 has been developed and will
be used to make an inventory plan for ZBC.

Demands For Airwing ModelONTH 2014 2015 FORECAST FOR 2016

Month 2014 2015 Forecast 2016

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
Movember 22 25 28
December 38 42 47

Discussion 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?

Jawab :

Diketahui :

- Order cost (S) = 65$ /order

- Inventory carrying cost is 1% per month (12% per year)
- Price (paid by the customers) for the AirWing is $170 per bicycle
- The firm wants to maintain a 95% service level with its customers to minimize the losses on
the lost orders
- Lead time (L) = 4 weeks
- Total demand/year (D) = 439

Month 2014 2015 Forecast 2016 Average demand

January 6 7 8 36,58
February 12 14 15 36,58
March 24 27 31 36,58
April 46 53 59 36,58
May 75 86 97 36,58
June 47 54 60 36,58
July 30 34 39 36,58
August 18 21 24 36,58
September 13 15 16 36,58
October 12 13 15 36,58
Movember 22 25 28 36,58
December 38 42 47 36,58
Total 343 391 439  

Ditanya :

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?

Dijawab

- Cost per bike = 60 % * $170 = $ 102

- Holding cost (H) = ($102)*1 %*12 per year/byclye= $12,24 per year/bicycle
- Service level = 95 % dan z-value =1,645
- Average demand /month (d) = 439/12 =36,58 bikes
 - Standart deviation forecast 2016 dari perhitungan excel = 25,67 bikes
Forecast 2016
8
15
31
59
97
60
39
24
16
15
28
47
439
STDEV 25,67

1. Order quanity

Q=
√ 2 x 439 x 65 = 68,28 = 68 unit sepeda
12,24
2. ROP dan total cost

- ROP = (36,58 x 4)+(1,645 x 25,67) = 188,54 = 188 sepeda

- Safety stock = P. Norm dis 95 % x stadart dev forecast 2016 = (1,645 x 25,67) = 42 sepeda

- Total cost = annual holding + annual order cost

=( ½ Q*Holding cost) + (safety stock*holding cost)+ ((total demand/Q)* order

cost)

=( 0,5 x 68 x 12,24 ) + ( 42 x 12,24 )+ ¿

= 416,16 + 514,08+ 419,63 = $ 1349,87

3. Dari hasil pengolahan diatas dapat disimpulkan trend permintaan penjualan secara seasonal,
maka dari itu perlu perencaan secara triwulan agar lebih terencana di setiap segmen tahunnya,
dengan total cost $ 1349,87