Annual Inventory Costs, Supply Chain Management, Supply Chain Management

Annual Inventory Costs, Supply Chain Management, 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, Supply Chain Management

Zara report, got my assignment submission due on thursday 18th i would like...

got my assignment submission due on thursday 18th i would like to know the price for 2300 words

Operational research problem, GroceryKart.com is responsible for supplying ...

GroceryKart.com is responsible for supplying fresh vegetables and produce to all mom-and-pop retail stores in Mumbai and adjoining suburbs. There are about 600 stores in their netw

Concept of supply chain management, what a re concept of supply chain manag...

what a re concept of supply chain management

Case study, what is the supply chain for milk

what is the supply chain for milk

Sales and distribution, notes

notes

Logistics, Discuss the logistics strategies

Discuss the logistics strategies

Describe the several financial ratios, Problem 1: Describe the need fo...

Problem 1: Describe the need for safety stock - Demand fluctuation, delay in receipt of inventory, impact of slow delivery - Advantages of safety stock Problem 2: D

the total supply chain profit, Tom owns an independent bookstore located i...

Tom owns an independent bookstore located in Philadelphia. Tom has to decide on the best order quantity for a new self-help book that is to be released soon. The books will each

Logistics, Discuss the logistics strategies

Discuss the logistics strategies

Linear program to optimizes cost , Aerial Products has received a contract ...

Aerial Products has received a contract to construct airframes produced at a client's factory in Tennessee. There are strict quality control measures in place for the airframes.

Write Your Message!

Name

Email id

Message

Verfication Code

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

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