QSO 322 ACME BICYCLE CASE STUDY
The purpose of this case study is to apply a number of the key concepts covered in the course textbook to a notional business case. Consider yourself the supply chain manager (SCM) for this company. In this position, you work closely with the plant production manager to support the production schedule. The production schedule is updated every quarter based on the latest sales estimates from the marketing department. You also work with the purchasing department regularly for reorder of raw materials from various suppliers. Another one of your key responsibilities is that you manage the warehouse, so you are responsible for the efficient use of the limited warehouse space that you do have. You must maintain sufficient inventory to ensure that there are no work stoppages because of stock outages. As the SCM, you are also responsible for outbound transportation and finding economical means to ship finished goods in a timely manner. In view of your wide range of responsibilities as the SCM, you play a vital role in the profitability of your company.
Company background: Acme Bicycle Company is a medium-size bicycle manufacturer located in Wichita, KS. It specializes in “theme” bicycles for children and teenagers. The themes include princesses from fairytales and animals, which are popular with girls, and aliens, robots, and sports heroes, which are popular with boys. As such, Acme Co. routinely produces its bicycles in small batch sizes to follow the latest popular trends with its children and teenager customer base. This also ensures that the company will not be left with unsold bicycles that are out of style with its customer base. The following is a summary of Acme Co.: