User Account

All Pages

Annual Inventory Costs., Supply Chain Management

Assignment Help:
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 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 ?

Related Discussions:- Annual Inventory Costs.

What are supply bills, Question 1 Corporate Banking represents the wide ra...

Question 1 Corporate Banking represents the wide range of banking and financial services provided to domestic and international operations of large local corporates and local oper

Forecast, develop a method that will optimal ordering quanties so that we m...

develop a method that will optimal ordering quanties so that we maximize the gross profits and also take into account inventory costs, product cost and price markups

Supply Chain Management, i wanted to know how much will it cost to a assign...

i wanted to know how much will it cost to a assignment could you please guide me..

Answer, What is the effect of overstocking and under stocking in an organiz...

What is the effect of overstocking and under stocking in an organization?

What is the composition of the central procurement board, Question 1: A...

Question 1: A Mr Lovebook informs Library Books that he wishes to buy one book "The Great Book" by Mr Bookwriter which is due to come out on 25 April 2009 at 11.00 am at the li

Challenge question, what is the potential negative or downside to the long-...

what is the potential negative or downside to the long-term Starbucks-OHL collaboration? identify what you can consider to be three major potential problems in such long-term relat

Knowledge of supply chain , various opportunities related with E-Supply Cha...

various opportunities related with E-Supply Chain?

Ferrari inbound logistics, i want to know about five value chain of ferrari...

i want to know about five value chain of ferrari company

Describe the two trade-offs in transportation design, Question 1: Descr...

Question 1: Describe with an example, the final step for achieving strategic fit Explanation of strategic fit Question 2: Describe the two trade-offs in transportatio

Supp chain managementl, diagram

diagram

Write Your Message!

Captcha
Order Assignment

Featured Services

Order Now

Popular Subjects

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd