Parts Emporium Case Study

2427 Words Apr 11th, 2011 10 Pages
INTRODUCTION

Parts Emporium, Inc. is a wholesale distributor of automobile parts formed by two disenchanted auto mechanics, Dan Block and Ed Spriggs. Originally located in Block’s garage, the firm showed slow but steady growth for 7 years before it relocated to an old, abandoned meat-packing warehouse on Chicago’s South Side. With increased space for inventory storage, the company was able to begin offering an expanded line of auto parts. Fifteen years later, Parts Emporium was the largest independent distributor of auto parts in the north central region.

Parts Emporium has engaged Sue McCaskey as materials manager for the company. She recently graduated from a prominent business school. As she is being handed the task
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Actual demand for drive belt is shown at Table 3.

Table 3: Actual Demand for DB032

|Week |Actual Demand |Week |Actual Demand |
|11 |18 |17 |50 |
|12 |33 |18 |53 |
|13 |53 |19 |54 |
|14 |54 |20 |49 |
|15 |51 |21 |52 |
|16 |53 | | |

The information for DB032 is shown at Table 4 below.

|Lot size |1000units |
|Lead time |3 weeks |
|Inventory on-hand |324

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