PART A

Speedy Bicycle Company $($SBC$)$ is a wholesale distributor of a wide variety of bicycles and bicycle parts. The most popular model is

the Dragonfly, which sells for $$180.$ All manufacturing is done at a plant in China, and shipment takes a month $(30$ days$)$ from the

time an order is placed. The estimated order cost is $$75,$ including customs clearance. SBC$$s cost per bicycle is $65\%$ of selling price,

and inventory carrying cost is $11\%$ per year of SBC$$s cost$.$ If the company cannot fulfill a retail order, the retailer will get the

shipment from another distributor and SBC loses that business. SBC is planning inventory for $2023$ based on forecasted demand and

wants to maintain a $93\%$ service level to minimize lost orders. The company has $300$ working days per year.