Case Study

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 1) The organization has designed a unique helmet with an aerodynamic design and built-in Bluetooth communication system. It works with its suppliers and produces a limited run to test the market. The helmets are more expensive than its regular line of helmets. What inventory control techniques would be most effective with its helmet retailers?