OPERATIONS MANAGEMENT THE NATIONAL BICYCLE INDUSTRIAL COMPANY: IMPLEMENTING A STRATEGY OF MASS-CUSTOMIZATION Anindito Prabowo (0848005) Vidya Narayani (0848073) Muhammad Adly Yusrizal (0848055) Rogier De Roy MAGISTER MANAGEMENT GADJAH MADA UNIVERSITY YOGYAKARTA 2008 COMPANY BACKGROUND NBIC was Japan’s second largest manufacturer of bicycles in 1992 with sales reaching about X20 billion. The firm marketed bicycles under three different brand names
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Executive Summary As National Bicycle transitions to the production of a customized bicycle‚ employing a concept of mass customization‚ the Company must ensure that its supply chain is responsive enough to handle the characteristics of an innovative product. Demand will be highly unpredictable and the final product‚ with over 2 million options‚ will also be unpredictable. Given National Bicycle’s current high level of automation‚ the transition to the POS system should be smooth. Its current
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Case Study: Kootenay Bicycle Company Prepared for: Cam Shackelton Feb 13‚ 2007 EXECUTIVE SUMMARY Kootenay Bicycles (Kootenay) build custom frame or bike in a large metropolitan area in western Canada since 2002. Although sales have been steadily increasing since inception‚ it has not been successfully translated to profits. Signs of operational inefficiencies‚ lack of financing and limited expandability limits its growth. This report analyzes Kootenay’s current
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seminar Strategic process and strategic analysis (Baldwin bicycle company case) Required questions: a. On the basis of Michael Porter’s (1980) competitive strategies‚ how does Baldwin currently compete? Justify your answer. In this case‚ Baldwin currently competes on differentiation strategy. Baldwin had been making bicycles for almost 40 years and there are ten models in the company’s line. The company only focuses on making bicycles ranging from a small beginner’s model with training wheels
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Oscar M. Inocencio Chester V. Lagutin Felomena C. Baal Edsel Cariz J. Tiu 12 October 2012 “Baldwin Bicycle Company” Background of the Study: Baldwin Bicycle Company (BBC) is a full-line bicycle manufacturing company with 40 years of experience. In 1982‚ BBC has revenue of over $10M for 98‚791 units produced. BBC exclusively distributes through independently-owned retailers‚ their bicycles are known for their above-average quality. In May 1983‚ a rapid-growing Northwestern discount retail
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Zhou Bicycle Case Study Zhou Bicycle Company‚ located in Seattle‚ is a wholesale distributor of bicycles and bicycle parts. Formed in 1991 by University of Washington Professor Yong-Pia 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 with 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
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BALDWIN BICYCLE COMPANY Baldwin Bicycle Company has been a bicycle manufacturer who produced various high quality models. Due to competition in 1981‚ the firm’s sales revenues significantly dropped in the following two consecutive years. In addition‚ it could only operate at 75 percent of the plant’s capacity. In May 1983‚ the firm received a proposed production plan of sporting bicycles‚ named Challenger‚ from Hi-Valu. There would be two types of direct costs associating with the new bicycle production
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Baldwin Bicycle Company Baldwin Bicycle Company is its own independent bicycle shop that has been in business for almost 40 years. Last year Baldwin had sold 98‚791 bikes which accounted for nearly $10 million in sales for 1982. Suzanne Lesiter is the marketing Vice President of Baldwin and has just been offered a proposition from Karl Knott‚ a buyer from Hi-Valu to possibly start producing bikes for them. Baldwin had never conducted any business with a chain department such as Hi-Valu since it was
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BALDWIN BICYCLE COMPANY In May 1983‚ Suzanne Leister‚ marketing director of Baldwin Bicycle Company‚ was mulling over the discussion she had had the previous day with Karl Knott‚ a buyer from Hi-Valu Stores. Hi-Valu operated a chain of discount department stores in the North West. Hi-Valu’s sales volume had grown to the extent that it was beginning to add its "own-brand" (also called "private-label") merchandise to the product lines of several of its departments. Mr. Knott‚ Hi-Valu’s buyer for
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Zhou Bicycle Case study Annual demand = D = 439(441) (given in table) Cost of Bicycle at whole sale (C) = 0.60*170 = $102 Carrying cost (h) = 12% of cost Ordering cost (S) = $65 per order Lead time = 4 weeks Q.1 Use EOQ model for Inventory Management when we know demand day Q* = Sort [2*annual demand*ordering cost/holding cost] Q* = Sort [2*439*65/0.12*102] Q* = 68.28 or 69 units Per order‚ no of bicycle are 69 units. Average cycle inventory = Q*/2 = 69/2 = 34.5 Number of orders per
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