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Zhou Bicycle Company

Updated August 11, 2022

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Zhou Bicycle Company essay

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What do you know Zhou Bicycle Company?  Zhou Bicycle Company location is in the state Seattle Washington in which it was founded in the year 1981 by a professor named Yong-Pin Zhou from the University of Washington.

The main origin for its revenue for the company comes from Airwing. The Zhou Bicycle Company has retail outlets stores which are about 400 miles in distance from the distribution center. The retail outlets collect orders from ZBC in which the lead time is 2 days. Then they check to see if the distribution center supply has the merchandise available. ZBC does not do any backorders because they end up losing the value of the business.

They offer an extensive number of bicycles in which the most favored model is the Airwing that brings in the most profit for the company. The ZBC company deals out a wide selection of bicycles in which a number of models comes from supplier in China. This usually takes up to 4 weeks after the bicycle has been ordered. With the required payments in the transmissions of written documents. They need to have a customs clearance to comprise with the ZBC approximates every time an order is fulfilled of 65.00. ZBC pays for the purchase of the bicycle which is abruptly 60% of the manufactured retail price on all models that are obtainable in the inventory cost of 1% a month or 12% every year from the purchase price paid by ZBC.

I would propose that the future plans for ZBC is to develop an inventory plan for 2016. ZBC needs to continue to have a 95% customer service level to reduce the chances of any losses and to minimize the misplaced orders. It would benefit ZBC to Collect the statistics from past periods because this will help in forecasting the Airwing prototype for the sales of 2016 in which it be used with the future inventory planning of ZBC.

Zhou Bicycle Company essay

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