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Rob Roller has been in charge of inventory policy at Cyclorama, a large retail bicycle shop in Orlando, Florida. He now orders Chrome-Moly frames from
Rob Roller has been in charge of inventory policy at Cyclorama, a large retail bicycle shop in Orlando, Florida. He now orders Chrome-Moly frames from Frameco, a local frame supplier. Cyclorama builds each bike by adding different Shimano component groups to each frame. Currently, cyclorama's annual demand for frames is 2,000 per year. The lead time is 10 days, and the ordering cost per order is $50. The holding cost is estimated to be 25% of the unit cost. Frameco offers the following discounts
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