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Harley Davidson purchases components from three suppliers. Components purchased from Supplier A are priced at $ 5 each and used at the rate of 206700 units per year. Components purchased from Supplier B are priced at $ 4 each and are used at the rate of 25,000 units per year. Components purchased from Supplier C are priced at $ 5 each and used at the rate of 10,000 units per year. Currently Harley purchases a separate truckload from each supplier. As part of its JIT drive, Harley has decided to aggregate purchases from the three suppliers. The trucking company charges a fixed cost of $ 400 for the truck with an additional charge of $100 for each stop. Thus, if Harley asks for a pickup from only one supplier, the trucking company charges $ 500; from two suppliers it charges $ 600; and from three suppliers it charges $ 700. Harley incurs a holding cost of 20% (of the price) for each component. What is the minimal annual inventory cost of the new aggregate replenishment strategy? What is the minimal annual inventory cost of the Harley’s current strategy of ordering separately from each supplier? How much is the saving resulted?
Illustrate what is Great Reception's profit when producing at the profit-maximizing output
The Determinants of Market Interest Rates. An analyst is evaluating securities in a developing nation where the inflation rate is very high. As a result, the analyst has been warned not to ignore the cross product between the real rate and inflation.
Demand for sporting events is uncertain, and depends on the quality of the match, as well as on unpredictable events, like the weather. Elucidate how would you price these two events differently.
You read in a business magazine that computer firms are reaping high profits. Assume that the computer market is perfectly competitive.
Market demand for laptop computers is y = 500 - 2p. But the computers are developed by a hardware firm with a cost function c(y) = 10y + 100, & the operating system is developed by a software firm with a cost function of c(y) = 150. Calculate the opt..
The surplus cheese USDA buys is the difference between the quantity of cheese producers sell (212.5 billions of pounds of cheese) and the quantity of cheese consumers are willing to buy at the price floor. Taxes must be collected to pay for the purch..
In 2010, the Laser Company produced 18 t-shirts. Three of them were sold to Catherine for $551 each, later that same year Catherine sold the now used t-shirts to Max for $540 each. The reaming t-shirts that Laser produced were not sold to anyone that..
Compute the equilibrium price of guitars and the equilibrium quantity of guitars in State College.
q.south korea can produce a maximum of 600 million toaster ovens or 900 million tons of rice per year. the u.s. can
When the government imposes a price floor above the market price, the result will be that:
If a perfectly competitive firm is a price taker, then
u.s. trucking pays its drivers 40000 per year while american trucking pays its drivers 38000 per year. for both firms
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