Baldwin Bike Company

 Essay about Baldwin Bi-cycle Company

п»їBaldwin Bi-cycle Company

Baldwin Bicycle Organization is its own independent bike shop which was in business for nearly four decades. Last year Baldwin had offered 98, 791 bikes which will accounted for almost $10 million in sales for 1982. Suzanne Lesiter is the promoting Vice President of Baldwin and has just recently been offered a proposition by Karl Knott, a buyer from Hi-Valu to quite possibly start making bikes for these people. Baldwin got never done any organization with a sequence department just like Hi-Valu since it was use to its own self-employed retailers. There were three circumstances that must be attained in order for the offer to be produced between the two companies. The first condition is that Hi-Valu wants to include ready use of a large pool of inventory, but failed to want control of the bikes till that reached its stores or perhaps would pass the several month deadline of being held at all their regional warehouses. Hi-Valu would then possess 30 days to pay Baldwin. When looking at this new system of products on hand, Baldwin will be adding fresh costs which may have to deal with the regional facilities of Hi-Valu. These asset related costs include record keeping costs of $7, 156. 37, inventory insurance of $2, 146. 91, state real estate tax of $5, 009. 46, inventory-handling of $22, 066. 13, and pilferage of $3, 578. 13. These relevant costs equal to about $39, 957. '07. Baldwin should also add different asset costs for the way the inventory method is being manage. Baldwin will not likely expect to show any revenue for at least the first 8 weeks considering most of their motorcycles will be with the regional facilities. Even when they have been moved to one of Hi-Valu's stores or have come to the 4 month deadline, Baldwin keeps having to wait one more 30 days for their payment from Hi-Valu. These kinds of extra changing costs consist of materials for two months for $165, 833. 33, Operate Progress for $34, six hundred, Finished Merchandise at $34, 600, Products at Hi there Valu by $288, 333. 33, and the pay amount of 30 days pertaining to the Accounts Receivable by $192, 637. 50. In general...



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