The Martin-Pulling Bicycle Corporation MPBC is used as an example to illustrate many of the inventory planning issues. Based on the data, inventories should be efficiently used to support the company’s growth in product sales. Inventory may be helpful in maintaining a consistent supply of products or as required. This study’s initial purpose will be instruct MPBC about how to create an inventory for 2012. We will use Economic Order Quantity to get important information like the price per unit and the Re-ordering intervals. The third task must discuss the possibility of ROP being greater than EOQ. Last section must contain a conclusion that clarifies how inventory plans are used.
A large inventory can be dangerous for any company if it is not used by buyers when they are most likely to buy. Martin-Pullin Bicycle Corporation MPBC is a distributor for bicycles and parts. The organization should have an inventory plan (Martin-Pullin Bicycle Corporation case studies, 2014). Airwing, their brand name is $65 per bike. This is a product they specialize in. They will pay $650 for 10 orders. MPBC needs to examine the need for cars and develop a replenishment plan. It also has to track and manage bicycle inventories. This paper aims to create an inventory plan for MPBC and discuss ROPs as well as total costs. It also addresses how to handle demand which is below the planning level. Martin-Pullin Bicycle Corporation Case Study 2014