Reference no: EM1387389
The tennis club has a number of inventories it must manage and must minimize all its expenses to stay in business. For each inventor, describe a goo management policy or system:
1) Twenty models of tennis racquets are sold, ten from Wilson and ten from Babolat, and each model has five different grip sizes. The club has to have demonstrator on hand or ach model in each grip size. For immediate sale, the club tries to have on hand at least two of each model in the most popular #3 grip size. Racquet come unstrung, and are custom strung when sold at a cost of $30 to the club, which is included in the average price of $210 per racquet to the player. The club buys racquets from a New York supplier at $90each, and has to pay the Fed Ex shipping charge of $35 on any order, of any size, to the supplier. If a player does not see the model and size in stock, he/she is willing to wait up to two weeks to receive it. The supplier almost always fills an order in five days. The club borrows money on its line of credit at 7%. The supplier must be paid 10 days after a shipment. Currently, total weekly racquet demand is a fairly steady 15 per week.
2) Bottled water is in constant demand at the club, at a steady 4 cases per day. The cases are stored in a bah room, and too man of them get in the way. One person tracks this inventory, and estimates a holing cost of $1 per case per day. The local water supplier delivers about four hours after a phone call: the club person's time charge in making an order is about $6.
3) Each December, the club gives away to its members a nice appointment book with its logo printed on a faux leather cover. The club's cost is around $3.40 per book. Annual demand follows a normal curve with a mean of 1258 and a standard deviation of 24. Any left-over books by the end of January are given away free to a local charity. If a club member does not receive a book because of a shortage, he/she tends to be quite disappointed. An unknown number of books "disappear" each year-end, mostly to visitors, teens, and relatives of club feels that the book is a little gift and a promotional item.
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