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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 240,000 units per year. Components purchased from Supplier B are priced at $ 4 each and are used at the rate of 30,000 units per year. Components purchased from Supplier C are priced at $ 5 each and used at the rate of 10,800 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 Harley’s current strategy of ordering separately from each supplier?
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Step back from all this and tell me what you think the long-term consequences of the incoming and outgoing FDI flows will be on national and regional economies, and also on the political construct of many of the nations we trade with. For example,..
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Inventory management is critical to success in the simulation. With respect to your team, discuss how you decide to balance the risk of stockouts against the costs of maintaining excess inventory.
QA best practices that can be developed and implemented to increase revenues and/or to decrease costs. Please provide at least three mathematical examples supporting your recommendations.
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