Harley davidson purchases components from three suppliers, Ask an Expert

Management Studies

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.

-How much is the saving resulted?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91414119

Have any Question?Write your Review or question?

Related Questions in Operation Management

Extra credit the target in clifton knows that teresa

Extra Credit: The Target in Clifton knows that Teresa Guidice is a frequent shopper. The manager of the store has approached her in the past about potentially doing a PR/promotional event for the store but Teresa has wan ...

Marketing in action case real choices at starbucksstarbucks

Marketing in Action Case: Real Choices at Starbucks Starbucks began as a local coffee bean roaster and retailer of whole bean and ground coffee, tea, and spices. From 1971, a lone store in Seattle’s Pike Place Market has ...

1 should employees receive pay increases for simply doing

1. Should employees receive pay increases for simply doing the job they are were hired to do or should they have to go above and beyond? Would your answer be different for bonuses? Provide an explanation for your respons ...

1 describe the formal communication network in your current

1. Describe the formal communication network in your current or past place of employment, if not employed discuss an organization, division, or department with which you have been a member. Discuss why you think the comm ...

1 with india and china as the top business process

1. With India and China as the top business process outsourcing countries in the world, what can you do to prepare yourself for competing in a flat world? Be specific. 2. This question is for a project about providing an ...

Assignment1 after reading the case scenario in the

Assignment 1. After reading the case scenario in the document linked above, make an argument for one of the actions: staying with your teammate or descending alone. The technical aspects of mountain climbing are not impo ...

A property owner wished to sell a small apartment building

A property owner wished to sell a small apartment building that she owned. She consulted a local real estate agent and listed her property. Because she was about to leave on her lengthy winter vacation, she provided the ...

1 what are the primary and secondary components of

1. What are the primary and secondary components of Chipotle’s value chain? Cite Sources. 2. Assume you are opening a new recreational facilities business called SafeHeaven, in a mid-size city in the United States, in yo ...

Demand for walnut fudge ice cream at the sweet cream dairy

Demand for walnut fudge ice cream at the Sweet Cream Dairy can be approximated by a normal distribution with a mean of 18 gallons per week and a standard deviation of 3.3 gallons per week. The new manager desires a servi ...

Pinpointing the primary target market for a productservice

Pinpointing the primary target market for a product/service is important because it enables the entrepreneur to estimate sales in terms of dollars and units. It also provides a framework for the entrepreneur to determine ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert