Roman Numerals and Cycle Inventory Essay

Question 2: Harley Davidson| | | | | 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. Each truck trip costs $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. How many engines should Harley load onto each truck?

What is the cycle inventory of engines at Harley? | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Input| | | | | | Demand, R =|  | 109,500 | (assuming 365 operating days)| Fixed cost per order, S=| $ 1,000 | | | | Cost per engine, C =| $ 500 | | | | Holding cost, h=|  | 20%| | | | | | | | | | Output| | | | | | EOQ =|  | 1,480 | | | | of orders per year| | 74 | | | | Annual Order Cost| | $ 73,993 | | | | Cycle inventory (units)| 740 | | | | Cycle inventory (value)| 369,966 | | | | Annual Holding Cost| | $ 73,993 | | | | Total Inventory Cost|  | $ 147,986 | | | | | | | | | | Order Size Increment =| 20 | | | | | | | | | | Order| Annual |  | Total| | | Size| Order Cost| Holding Cost| Cost| | | 300 | $365,000| $15,000| $380,000| | | 20 | $342,188| $16,000| $358,188| | | 340 | $322,059| $17,000| $339,059| | | 360 | $304,167| $18,000| $322,167| | | 380 | $288,158| $19,000| $307,158| | | 400 | $273,750| $20,000| $293,750| | | 420 | $260,714| $21,000| $281,714| | | 440 | $248,864| $22,000| $270,864| | | 460 | $238,043| $23,000| $261,043| | | 480 | $228,125| $24,000| $252,125| | | 500 | $219,000| $25,000| $244,000| | | 520 | $210,577| $26,000| $236,577| | | 540 | $202,778| $27,000| $229,778| | | 560 | $195,536| $28,000| $223,536| | | 580 | $188,793| $29,000| $217,793| | | 00 | $182,500| $30,000| $212,500| | | 620 | $176,613| $31,000| $207,613| | | 640 | $171,094| $32,000| $203,094| | | 660 | $165,909| $33,000| $198,909| | | 680 | $161,029| $34,000| $195,029| | | 700 | $156,429| $35,000| $191,429| | | 720 | $152,083| $36,000| $188,083| | | 740 | $147,973| $37,000| $184,973| | | 760 | $144,079| $38,000| $182,079| | | 780 | $140,385| $39,000| $179,385| | | 800 | $136,875| $40,000| $176,875| | | 820 | $133,537| $41,000| $174,537| | | 840 | $130,357| $42,000| $172,357| | | 860 | $127,326| $43,000| $170,326| | | 80 | $124,432| $44,000| $168,432| | | 900 | $121,667| $45,000| $166,667| | | 920 | $119,022| $46,000| $165,022| | | 940 | $116,489| $47,000| $163,489| | | 960 | $114,063| $48,000| $162,063| | | 980 |

$111,735| $49,000| $160,735| | | 1000 | $109,500| $50,000| $159,500| | | 1020 | $107,353| $51,000| $158,353| | | 1040 | $105,288| $52,000| $157,288| | | 1060 | $103,302| $53,000| $156,302| | | 1080 | $101,389| $54,000| $155,389| | | 1100 | $99,545| $55,000| $154,545| | | 1120 | $97,768| $56,000| $153,768| | | 1140 | $96,053| $57,000| $153,053| | | 160 | $94,397| $58,000| $152,397| | | 1180 | $92,797| $59,000| $151,797| | | 1200 | $91,250| $60,000| $151,250| | | 1220 | $89,754| $61,000| $150,754| | | 1240 | $88,306| $62,000| $150,306| | | 1260 | $86,905| $63,000| $149,905| | | 1280 | $85,547| $64,000| $149,547| | | 1300 | $84,231| $65,000| $149,231| | | 1320 | $82,955| $66,000| $148,955| | | 1340 | $81,716| $67,000| $148,716| | | 1360 | $80,515| $68,000| $148,515| | | 1380 | $79,348| $69,000| $148,348| | | 1400 | $78,214| $70,000| $148,214| | | 1420 | $77,113| $71,000| $148,113| | | 440 | $76,042| $72,000| $148,042| | | 1460 | $75,000| $73,000| $148,000| | | 1480 | $73,986| $74,000| $147,986| | | 1500 | $73,000| $75,000| $148,000| | | 1520 | $72,039| $76,000| $148,039| | | 1540 | $71,104| $77,000| $148,104| | | 1560 | $70,192| $78,000| $148,192| | | 1580 | $69,304| $79,000| $148,304| | | 1600 | $68,438| $80,000| $148,438| | | 1620 | $67,593| $81,000| $148,593| | | 1640 | $66,768| $82,000| $148,768| | | 1660 | $65,964| $83,000| $148,964| | | 1680 | $65,179| $84,000| $149,179| | | 1700 | $64,412| $85,000| $149,412| | | 720 | $63,663| $86,000| $149,663| | | 1740 | $62,931| $87,000| $149,931| | | 1760 | $62,216| $88,000| $150,216| | | 1780 | $61,517| $89,000| $150,517| | | 1800 | $60,833| $90,000| $150,833| | | 1820 | $60,165| $91,000| $151,165| | | 1840 | $59,511| $92,000| $151,511| | | 1860 | $58,871| $93,000| $151,871| | | 1880 | $58,245| $94,000| $152,245| | | 1900 | $57,632| $95,000| $152,632| | | 1920 | $57,031| $96,000| $153,031| | | 1940 | $56,443| $97,000| $153,443| | | 1960 | $55,867| $98,000| $153,867| | | 1980 | $55,303| $99,000| $154,303| | |

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