Sign In
Not register? Register Now!
Essay Available:
Pages:
3 pages/≈825 words
Sources:
3 Sources
Level:
APA
Subject:
Management
Type:
Coursework
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 17.5
Topic:

Managing Economies of Scale in a Supply Chain: Cycle Inventory (Coursework Sample)

Instructions:

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; 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?
As part of its initiative to implement just-in-time (JIT) manufacturing at the motorcycle assembly plant in Exercise 1, 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 affect annual inventory costs at Harley? What should the cost of each truck be if a load of 100 engines is to be optimal for Harley?

source..
Content:


Managing Economies of Scale in a Supply Chain: Cycle Inventory
Author Name
Institution Affiliation
Part 1
From this case, it is evident that Harley-Davidson transports engines from Milwaukee to Pennsylvania through trucks, and the cost for every trip is $1,000.
Total number of motorcycles that are sold per day = 300
The holding costs = 20 percent of 500 = $100 for every engine
Now let us assume that “x” engines are loaded to every truck.
The costs of transportation = $1,000
Holding costs = $100*x = 100x
Total costs = 1,000+100x
Considering that the value of total revenues is the value of an engine, we can say that the total revenues are 500*x. The same will be the value at the break.
1,000+100x = 500x
1,00

...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:

Other Topics:

  • Module 5 Management Coursework Dicscussion Forum
    Description: Module 5: Discussion ForumDuring the past few weeks, you have been presented with information about what constitutes effective, professional writing....
    1 page/≈275 words | No Sources | APA | Management | Coursework |
  • Nike Inc. Analysis: Establish Long-Term Goals And Objectives
    Description: The company has a low environmental impact strategy that defines a low carbon future as a critical component of its strategic goals and objectives....
    3 pages/≈825 words | 3 Sources | APA | Management | Coursework |
  • Nike Coursework: Evaluation And Control
    Description: The company is currently manufacturing, marketing and selling its products at international level. While doing so, they have never compromised on quality and consistency....
    4 pages/≈1100 words | 4 Sources | APA | Management | Coursework |
Need a Plagiarism Free Essay?
Submit your instructions!