Alex owns a shop that sells customized BMX bikes. Each one is uniquely tailored to the rider. The products are unique one-offs, made by an outsourced company to individual designs agreed between Alex and a designer from the outsourced company. In WEEK 26, Alex discusses with the manufacturer a design for a new bike. Alex and the manufacturer agree on a specification and an order is placed with the manufacturer. A. Calculate how long it will take before the BMX bike is available for sale in Alex's shop. That is, what is the Lead-Time between Alex placing order with her manufacturer and being able to display the item for sale in her shop? The information you need to calculate the Lead-Time is as follows: To design the bike 2 weeks To raise the order for the parts for the bike 1week To manufacture and deliver all the parts of the bike 4 weeks To assemble the bike 2 weeks To deliver the finished product to Alex’s shop 1 week B. What will be the week number when the Bike can be displayed? All the bike parts in this example come from UK. C.Estimate how the Lead Time be increased if the bike parts came from Italy, or from China?
Alex owns a shop that sells customized BMX bikes. Each one is uniquely tailored to the rider. The products are unique one-offs, made by an outsourced company to individual designs agreed between Alex and a designer from the outsourced company. In WEEK 26, Alex discusses with the manufacturer a design for a new bike. Alex and the manufacturer agree on a specification and an order is placed with the manufacturer. A. Calculate how long it will take before the BMX bike is available for sale in Alex's shop. That is, what is the Lead-Time between Alex placing order with her manufacturer and being able to display the item for sale in her shop? The information you need to calculate the Lead-Time is as follows: To design the bike 2 weeks To raise the order for the parts for the bike 1week To manufacture and deliver all the parts of the bike 4 weeks To assemble the bike 2 weeks To deliver the finished product to Alex’s shop 1 week B. What will be the week number when the Bike can be displayed? All the bike parts in this example come from UK. C.Estimate how the Lead Time be increased if the bike parts came from Italy, or from China?
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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- Alex owns a shop that sells customized BMX bikes. Each one is uniquely tailored to the rider. The products are unique one-offs, made by an outsourced company to individual designs agreed between Alex and a designer from the outsourced company.
In WEEK 26, Alex discusses with the manufacturer a design for a new bike. Alex and the manufacturer agree on a specification and an order is placed with the manufacturer.
A. Calculate how long it will take before the BMX bike is available for sale in Alex's shop. That is, what is the Lead-Time between Alex placing order with her manufacturer and being able to display the item for sale in her shop?
The information you need to calculate the Lead-Time is as follows:
- To design the bike 2 weeks
- To raise the order for the parts for the bike 1week
- To manufacture and deliver all the parts of the bike 4 weeks
- To assemble the bike 2 weeks
- To deliver the finished product to Alex’s shop 1 week
B. What will be the week number when the Bike can be displayed?
All the bike parts in this example come from UK.
C.Estimate how the Lead Time be increased if the bike parts came from Italy, or from China?
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