1414 factory space. INTRODUCTION nal product more cost attractive to her customers. NORTHCUTT BIKES II: Chapman, Lloyd M. Clive. Copyright @ 2004 by...

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1414factory space.INTRODUCTIONnal product more cost attractive to her customers.NORTHCUTT BIKES II:Chapman, Lloyd M. Clive. Copyright @ 2004 by Prentice Hall, Inc. All rights reserved.nation to build her own bikes to her particular customer specification.THE FORECASTING PROBLEMFrom Introduction to Materials Management Casebook, Revised Edition, J.R. Tony Arnold, Stephen N.Jan Northcutt, owner of Northcutt Bikes, started business in 1975 when she noticedthe quality of bikes she purchased for sale in her Raleigh bike shop declining whileshop itself and concentrate on the production of bikes from a fairly large leasedthe prices went up. She also found it more difficult to obtain the features she wantedcustomer base grew to include other bike shops in the area. As her business grewshop's responsiveness to options, delivery, and quality, however, the individualon ordered bikes without waiting for months. Her frustration turned to a determiponent value of the manufactured bikes. This not only improves her control of pro-processes into her operation, so that now she purchases less than 50% of the com-and demanded more of her attention, she soon found it necessary to sell the bikesembling them in a rented garage using two helpers. As the word spread about herduction quality but also helps her control the costs of production and makes the fi-She began by buying all the necessary parts (frames, seats, tires, etc.) and as-As the business continued to grow, she backward integrated more and more