Posted by **Jasmine** on Tuesday, November 24, 2009 at 9:11am.

Harley-Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant

in Pennsylvania. Engines are transported between the two plants using trucks, with each trip

costing $1,000. The motorcycle plant assembles and sells 300 motorcycles each day. Each

engine costs $500, and Harley incurs a holding cost of 20 percent per year.

a. How many engines should Harley load onto each truck? What is the cycle inventory of

engines at Harley?

b. As part of its initiative to implement just-in-time (JIT) manufacturing at the motorcycle

assembly plant, Harley has reduced the number of engines loaded on each truck to 100.

If each truck trip still costs $1,000, how does this decision impact annual inventory costs

at Harley? What should the cost of each truck be if a load of 100 engines is optimal for

Harley?

## Answer This Question

## Related Questions

- science help - A student did an experiment with two identical plants, Plant 1 ...
- Math - The panels for the Pulsar 32-inch TV are manufactured in three locations ...
- Algebra II - Two factory plants are making TV panels. Yesterday, Plant A ...
- ENEGRY COSTS - I need to know how much it would cost to build the following ...
- Managerial Economics - The Harley-Davidson motorcycle company, which had a ...
- math - help! 2005 2006 2007 2008 Plant 1 20 4 25 10 Plant 2 25 5 5 48 Plant 3 20...
- Phenix - The Harley Davidson motorcycle company, which had a copyright on the ...
- math - plant a produced 8000 fewer panels than plant b, 4 % of the panels from ...
- math - need help with a homework please explain how to get answer to ms ...
- Math-linear programming - The Furniture Co has two plants. The Eastside one ...

More Related Questions