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A skates company is a wholesale distributor of inline skates and skate parts. The company distributes five brands of skates, each of which is...
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Because of the increasing popularity of inline skates for recreational purposes, the company believes that its market may grow by as much as 25 percent in the upcoming year. There have been years when the full amount of expected growth did not materialize, however, so they has decided to base its plan on a more conservative 15 percent growth factor to allow for variations in consumer buying habits and to ensure that it is not excessively overstocked if the expected market does not occur. Holding costs is about 0.75 percent of the unit cost of an inline skate per month.
How to Develop an inventory control plan for company to use as the basis for its upcoming annual plan?
On the basis your particular plan, specify the safety stock requirement if the company want to maintain a 95% service level.
