Roman Numerals and Cycle Inventory

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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? |

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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%| | | |

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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 | | | |
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Order| Annual |  | Total| | |
Size| Order Cost| Holding Cost| Cost| | |
300 | $365,000| $15,000| $380,000| | |
320 | $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| |...
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