## Roman Numerals and Cycle Inventory Essay

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 | | | | Cycle inventory (value)| 369,966 | | | | Annual Holding Cost| | \$ 73,993 | | | | Total Inventory Cost|  | \$ 147,986 | | | | | | | | | | Order Size Increment =| 20 | | | | | | | | | | Order| Annual |  | Total| | | Size| Order Cost| Holding Cost| Cost| | | 300 | \$365,000| \$15,000| \$380,000| | | 20 | \$342,188| \$16,000| \$358,188| | | 340 | \$322,059| \$17,000| \$339,059| | | 360 | \$304,167| \$18,000| \$322,167| | | 380 | \$288,158| \$19,000| \$307,158| | | 400 | \$273,750| \$20,000| \$293,750| | | 420 | \$260,714| \$21,000| \$281,714| | | 440 | \$248,864| \$22,000| \$270,864| | | 460 | \$238,043| \$23,000| \$261,043| | | 480 | \$228,125| \$24,000| \$252,125| | | 500 | \$219,000| \$25,000| \$244,000| | | 520 | \$210,577| \$26,000| \$236,577| | | 540 | \$202,778| \$27,000| \$229,778| | | 560 | \$195,536| \$28,000| \$223,536| | | 580 | \$188,793| \$29,000| \$217,793| | | 00 | \$182,500| \$30,000| \$212,500| | | 620 | \$176,613| \$31,000| \$207,613| | | 640 | \$171,094| \$32,000| \$203,094| | | 660 | \$165,909| \$33,000| \$198,909| | | 680 | \$161,029| \$34,000| \$195,029| | | 700 | \$156,429| \$35,000| \$191,429| | | 720 | \$152,083| \$36,000| \$188,083| | | 740 | \$147,973| \$37,000| \$184,973| | | 760 | \$144,079| \$38,000| \$182,079| | | 780 | \$140,385| \$39,000| \$179,385| | | 800 | \$136,875| \$40,000| \$176,875| | | 820 | \$133,537| \$41,000| \$174,537| | | 840 | \$130,357| \$42,000| \$172,357| | | 860 | \$127,326| \$43,000| \$170,326| | | 80 | \$124,432| \$44,000| \$168,432| | | 900 | \$121,667| \$45,000| \$166,667| | | 920 | \$119,022| \$46,000| \$165,022| | | 940 | \$116,489| \$47,000| \$163,489| | | 960 | \$114,063| \$48,000| \$162,063| | | 980 |\$111,735| \$49,000| \$160,735| | | 1000 | \$109,500| \$50,000| \$159,500| | | 1020 | \$107,353| \$51,000| \$158,353| | | 1040 | \$105,288| \$52,000| \$157,288| | | 1060 | \$103,302| \$53,000| \$156,302| | | 1080 | \$101,389| \$54,000| \$155,389| | | 1100 | \$99,545| \$55,000| \$154,545| | | 1120 | \$97,768| \$56,000| \$153,768| | | 1140 | \$96,053| \$57,000| \$153,053| | | 160 | \$94,397| \$58,000| \$152,397| | | 1180 | \$92,797| \$59,000| \$151,797| | | 1200 | \$91,250| \$60,000| \$151,250| | | 1220 | \$89,754| \$61,000| \$150,754| | | 1240 | \$88,306| \$62,000| \$150,306| | | 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| | | 440 | \$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| | | 720 | \$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| | | 1800 | \$60,833| \$90,000| \$150,833| | | 1820 | \$60,165| \$91,000| \$151,165| | | 1840 | \$59,511| \$92,000| \$151,511| | | 1860 | \$58,871| \$93,000| \$151,871| | | 1880 | \$58,245| \$94,000| \$152,245| | | 1900 | \$57,632| \$95,000| \$152,632| | | 1920 | \$57,031| \$96,000| \$153,031| | | 1940 | \$56,443| \$97,000| \$153,443| | | 1960 | \$55,867| \$98,000| \$153,867| | | 1980 | \$55,303| \$99,000| \$154,303| | |

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