Northcutt Bikes Case Study

1061 words - 5 pages

Executive Summary
Northcutt Bikes is a bike manufacturer and a service provider of bike parts to the many retail businesses that sell Northcutt bikes. Northcutt Bikes has a warehouse that is 95% utilized however they have an order fulfillment rate of less than 80%. This has caused a loss of revenue due to orders being cancelled when needed parts are not in stock. To resolve the problem, we looked at 3 alternatives including establishing pooling groups within the same geographic region, establishing a continuous review inventory management system or staying the course. Our recommendation is to establish a continuous review inventory system that will reduce unnecessary inventory, increase ...view middle of the document...

Pooling groups can make effective allocation of safety stocks in the retail business, and is also a key for retail business to enhance overall operational efficiency. However, one problem that needs to be addressed is how to solve the conflict of pooling groups’ demand.
2. Another possible solution is that Northcutt Bikes could develop an information system that helps retail business divide the safety stocks of these items among themselves. To be specific, through sharing inventory information to retail business, Northcutt Bikes still owns controlling inventory management, including inventory types, quantity and timing of orders, and inventory ownership still belongs Northcutt Bikes. As a result, Northcutt Bikes can reach a win-win goal reducing inventory costs and improving service standards.
3. If Northcutt Bikes prefers to stay the current inventory strategy, then it should be aware that purpose of each inventory location should be distinguished according to the importance of parts. For example, some inventory locations should address retailers’ demands and the upstream should fulfill replenishment needs to Northcutt Bikes steady and normally.

Recommended Solution
In order to meet both of Northcutt’s objectives of reducing inventory and increasing service levels, Northcutt should implement a continuous review system to manage inventory. Based on the calculations provided in question 2 of the appendix, managers at Northcutt will need to set the reorder point for part FB378 at 118 units and 296 units for part GS131 for the continuous review system to meet their 95% service level requirement. The economic order quantity that should be used for reordering is 92 units for part FB378 and 118 for part GS131 as determined by the calculation performed in question 2 of the appendix.

In order to implement this system Northcutt will need to purchase barcode scanners, inventory software, and computer systems (Rovney, 2010). Staff will have to undergo training on the new system. In order to minimize errors, top performers during training should be identified. These top performers will be responsible for monitoring other employees’ use of the system for the first 30 days.

Assumptions, Restrictions and Constraints
The first assumption is that the competitive strength of the company is still developed around customer responsiveness and flexibility and that creating a...

Other assignments on Northcutt Bikes Case Study

Economy Effect Of Marijuana Essay

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout Essay

2033 words - 9 pages . The shoppers were charmed anyway, and acted on those gut feelings by choosing a coupon from the store that had flattered them over a coupon from a similar store. The study indicates that even flagrant flattery can sway customers. Business Psychology This month we’re looking at flattery and ingratiation, pervasive tools of influence in the workplace. Across the next few pages, we’ll show why insincere compliments and sucking up are effective—and

Hospitals Paper

6014 words - 25 pages I hope to provide in this paper a comprehensive understanding for what the term “hospital” has become. Hospitals are an extremely complex system that man has created and shaped and reshaped throughout history. My goal in writing and researching this paper will be to provide those who read it a clear understanding on how the hospital system got to where it is today, and to shed some light on the many organizations that affiliate with and

Course Syllabus

2610 words - 11 pages | |Recommended |The best way to learn mathematics is to PRACTICE, PRACTICE, and PRACTICE. At least forty minutes of study per day, every day| |Study Time |(including weekends and holidays) is necessary for the success in this class. You may need more (or less) study time | | |depending on your math background and skills. Forty minutes of study


1477 words - 6 pages themselves to the Boeing Values. The Code of Conduct is a certification that occurs on a yearly basis to certify all employees that they will follow the Code of Conduct (The Boeing Company: Ethics, 1999-2012). The Ethics Challenge is where Boeing provides training to help educate employees about certain situations that may arise throughout the day. In this challenge, there are specific case scenarios that can be used (The Boeing Company: Ethics

Assisted Suicide

1015 words - 5 pages Should physician-assisted suicide be legal? While I believe if one chooses to end his or own life through physician assistance for reasons that they chose, the choice should be up to the individual. Physician-assisted suicide should be at one's discretion. “Assisted Suicide, also called Voluntary Euthanasia, is currently a contentious issue in many countries. Because Euthanasia is legal in a few modern democracies: the Netherlands, Belgium

Tanglewood Case 1

797 words - 4 pages of their focal points of having a successful business is having exceeding customer service, and there is no need to go out and acquire new talent when Tanglewood already has the staff capable of developing their KSAOs. However, Tanglewood will need to acquire new talent if the company decides to open up a new store. Should Tanglewood look for new employees or outsource for staffing? In Tanglewood’s case, I would recommend using an outside


1391 words - 6 pages Есе по въпроса: Кои от всички „действащи” лица могат да се разглеждат като морално отговорни и в какво именно? по казуса Форд „Пинто” Корпоративните злодеяния са нанесли повече вреди на обществото от всички улични престъпления взети заедно. Според данни на ФБР сумата от уличните престъпления възлиза на $3.8 млрд. годишно, а загубите от корпоративните измами между $100 млрд. и $400 млрд. годишно

The Penis

1052 words - 5 pages The short story ”The Penis” is written by Hanif Kureishi. The short story is about a penis, which has been separated from its owner Doug, who we hear from later on. At first though we hear about a guy called Alfie who was “a cutter – a hairdresser – and had to get to work”. He is having breakfast with his wife, when she asks him what he did last night, and if he had a good time last night? Alfie can not remember what he did last night, he then

Managed Care Paper

543 words - 3 pages Managed Care and Case Management Care Marvin Lloyd BSHS/402-Case Management 27 August 2012 Virgil Miller Managed Care are techniques employed to help reduce the cost for providing health benefits and a system for improving organizations quality of


439 words - 2 pages The life expectancy is lower; so people are not kept alive with drugs for decades in a virtual sleep state. There is less state education; so kids don't have it drilled into them that their only goal in life is to make money, at the cost of 'everything' else. The health care is less; so diseases, usually brought by Westerners, kill many more than they do in countries where drug companies can make a fortune from selling medicines that aren't

Similar Documents

Northcutt Bikes: The Forecasting Problem Essay

500 words - 2 pages Northcutt Bikes: The Forecasting Problem Jan Northcutt is the owner of bike shop named after her. She has been owner this business for over 20 years. She started to notice that the quality of her bikes that she was purchasing for her to sale were declining while the prices she was paying was going up. The features that she preferred on the bikes were impossible obtain quickly. Instead of panicking or placing blame on somebody else she met

Segi Essay

2344 words - 10 pages calculate the salary of their employees without software. Thus, software is doing important role in this case. Example 2: Example of graphics and multimedia software that are widely used now days are CAD which is Computer Aided Design. CAD software is software that allows us to design an object using computer such as buildings, cars, bikes and so on. There are 4 features of CAD software which is functionality, impact on industry, training and

Virgin Group Essay

9107 words - 37 pages Virgin Atlantic Marketing Case Study Presented by Donal Manning James E. Salter Andre Tuinzing Prepared for Professor Enda McGovern Dominican University of California iii Virgin Atlantic Airlines Manning/ Salter/ Tuinzing Table of Contents LIST OF ILLUSTRATIONS………...…………………………………………………..IV EXECUTIVE SUMMARY……………………………………………………………….V HISTORY OF VIRGIN ATLANTIC

Mgt216 Essay

714 words - 3 pages The first ethical issue presented in the ethics game simulation was whether to warn consumers about the contaminated product and what information to provide consumers about the contaminant. The second ethical issue was whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. G-BioSport was not required to meet prior approval from the Federal Drug Administration before they