# Harley Davidson Case Study

Decent Essays
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? | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 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% | | | | | | | | | | Output | | | | | | EOQ = | | 1,480 | | | | # of orders per year | | 74 | | | | Annual Order Cost | | \$ 73,993 | | | | Cycle inventory (units) | 740 | | | | …show more content…
1260 | \$86,905 | \$63,000 | \$149,905 | | | 1280 | \$85,547 | \$64,000 | \$149,547 | | | 1300 | \$84,231 | \$65,000 | \$149,231 | | | 1320 | \$82,955 | \$66,000 | \$148,955 | | | 1340 | \$81,716 | \$67,000 | \$148,716 | | | 1360 | \$80,515 | \$68,000 | \$148,515 | | | 1380 | \$79,348 | \$69,000 | \$148,348 | | | 1400 | \$78,214 | \$70,000 | \$148,214 | | | 1420 | \$77,113 | \$71,000 | \$148,113 | | | 1440 | \$76,042 | \$72,000 | \$148,042 | | | 1460 | \$75,000 | \$73,000 | \$148,000 | | | 1480 | \$73,986 | \$74,000 | \$147,986 | | | 1500 | \$73,000 | \$75,000 | \$148,000 | | | 1520 | \$72,039 | \$76,000 | \$148,039 | | | 1540 | \$71,104 | \$77,000 | \$148,104 | | | 1560 | \$70,192 | \$78,000 | \$148,192 | | | 1580 | \$69,304 | \$79,000 | \$148,304 | | | 1600 | \$68,438 | \$80,000 | \$148,438 | | | 1620 | \$67,593 | \$81,000 | \$148,593 | | | 1640 | \$66,768 | \$82,000 | \$148,768 | | | 1660 | \$65,964 | \$83,000 | \$148,964 | | | 1680 | \$65,179 | \$84,000 | \$149,179 | | | 1700 | \$64,412 | \$85,000 | \$149,412 | | | 1720 | \$63,663 | \$86,000 | \$149,663 | | | 1740 | \$62,931 | \$87,000 | \$149,931 | | | 1760 | \$62,216 | \$88,000 | \$150,216 | | | 1780 | \$61,517 | \$89,000 | \$150,517 | |

## Related Documents

• Decent Essays

If the van commutes an average of 35 miles per day, and drives on 150 days out of the year, that equals (the product of 35 miles per day and 150 days worked per year) 5,250 miles per year. The van gets 21 miles per gallon in the city and 28 miles per gallon on the highway—so let’s say 24 miles per gallon. According to Nikolewski (2018), the average price per gallon of gasoline in California for 2018 will be \$3.10. Therefore, the estimated annual cost for fuel will be (5,250 miles driven per year divided by 24 miles per gallon; then 218.75 (miles driven per year) multiplied by \$3.10 per gallon) \$678.13. Insurance will be \$300 for 6 months of coverage at the minimum rate—1 year, \$600.…

• 1097 Words
• 5 Pages
Decent Essays
• Decent Essays

In 2013, forty-four billion dollars in medical and work cost from crashes (“State-Specific…”). In North Carolina, there are over 200,000 motor vehicle crashes. To add to that fact, that the cost of crashes to 5the state and its residents is billions each year. That includes the property damage, lost earnings and productivity, medical costs, emergency and safety personnel costs, and much, much more (Tippett). In 2013, in Alabama about 1,200 million dollars were from crashes, and in Alaska seventy-two million dollars were the cost from crashes also.…

• 1610 Words
• 7 Pages
Decent Essays
• Decent Essays

ft. and the Capacity of their washing department is 20,000 garments per day (24 hours) 7.5 Finishing The finishing section covers 32,000 sq. ft. area and its capacity of packing 20,000 garments/day 8. Environmental Uncertainty 8.1 Supply…

• 1496 Words
• 6 Pages
Decent Essays
• Decent Essays

Ed. Micheal O'Brien. Englewood Cliffs, N. J.: Prentice-Hall, 1968. 8-10. Print.…

• 2209 Words
• 9 Pages
Decent Essays
• Decent Essays

Incremental labor costs are \$90,000 per year, maintenance costs are \$25,000 per year and incremental overheads are anticipated to be \$50,000. You must calculate depreciation. Miscellaneous costs aside from depreciation are \$42,000 per year. This project has a life of 10 years and they estimate salvage value of the equipment at \$160,000. The cost of capital for Gordon is normally 10% but this particular project is out of their normal expertise and they would like to add a 3% risk premium.…

• 767 Words
• 4 Pages
Decent Essays
• Decent Essays

• CCD manufactures its own café furniture. It spends 15% to 20% of the capital cost for a store and also it manufacture its own coffee vending machine at a cost of approximately \$2000 compared to \$7000 for an imported machine. • Most of the retail companies took three and half month to set up their store in empty space but CCD can able to make their own store within 50 days, which included getting licenses, electricity and water supply. • CCD opened first coffee day lounge in 2010. It was 40% to 50% larger than cafes.…

• 984 Words
• 4 Pages
Decent Essays
• Decent Essays

(p. 14) E 84. (p. 14) A 85. (p. 15) A 86. (p. 15) B 87. (p. 16) A 88.…

• 4349 Words
• 18 Pages
Decent Essays
• Decent Essays

and Canadian markets. The factory featured a "just-in-time" system for this model's 2,400 components and 96 Kawasaki robots to do 95 percent of the welding. Another \$300 million in funds raised the number of robots to 128, introduced personal computers, increased the plant's capacity to 170,000 autos a year, and retooled it to produce the Ford Escort. In 1990 the plant turned out 47,702 Tracers and 40,902 Ford Escorts. A six-week strike by about 800 workers in Hermosillo ended in April 1987, when they received an average wage increase of 34.5 percent, plus a 20-percent inflation adjustment mandated by the government.…

• 4250 Words
• 17 Pages
Decent Essays
• Decent Essays

Annual license cost includes upgrades, maintenance, and standard support. Eagle Pipe has anywhere from 5,000 tickets to 10,000 tickets over the course of thirty days with a ticket average of \$180,000 per ticket, with such averages the potential cost for not implementing FieldFX would be \$7,340,703.22 annually. Eagle Pipe LLC current cost can be divided into five major categories. One, error rates involving pricing mistakes, missing items, etc. based on a 2% of \$100,000,000.00 of annual revenue would be the total annual cost of \$2,000,000.00.…

• 1562 Words
• 6 Pages
Decent Essays
• Decent Essays

Some people lose about four billion dollars a year because of odometer fraud, with an average rollback of 15,000 miles. There are more pre-owned Silverado pickup trucks for sale than any other car, about 120,000 throughout the United States. The state having more used vehicles would be Texas; Houston by itself has more than 32,000. Chevrolet is the most available in used cars with about 450,000; Ford has 425,000, and about 280,000 Toyotas. Believe it or not but the color silver is the most purchased car of used cars.…

• 1858 Words
• 8 Pages
Decent Essays