Question
A U.K. motorcycle helmet manufacturer imports three models of polycarbonate helmet shells and Lexan helmet visors from a foreign supplier. The shells are in two
A U.K. motorcycle helmet manufacturer imports three models of polycarbonate helmet shells and Lexan helmet visors from a foreign supplier. The shells are in two sizes and come in four colours: black, white, silver and red. The helmets come polished and ready for assembly. A different foreign supplier prints and cuts the design decals. The manufacturer provided its proprietary designs to the suppliers. A domestic supplier provides standard grey, fabric-padded linings with required sewn-in labels and the chinstrap assemblies with buckles. All the components must meet the organization's stringent specifications. The production of the polystyrene liner, assembly of the components and application of the design decal and clear coat protection are carried out at the manufacturer's plant. A local print shop provides the print material that is included with the helmet. The finished helmets are packaged in a plastic bag, placed in a box and shipped from a domestic supplier. The warehouse packs the boxes into larger cartons for shipping to retailers. The plant facility also has a warehouse for its components inventory and the finished, packaged helmets. The organization has a sales and marketing department, but has outsourced its payroll, benefits and IT activities. It has a small team of administrative support staff. The motorcycle helmet market is quite competitive, with both foreign and domestic products available.
Question: The helmet manufacturer's biggest sellers are the black and silver helmets with the standard house-brand decal. White and red helmets account for approximately 30 percent of sales. The organization has decided on replenishment inventory models for the helmet shells. Should the organization use the same replenishment inventory model for all the helmet shells or should it use one replenishment model for the black and silver helmets and another for the white and red helmets? Explain your choice.
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