Zero Motorcycles has its engine assembly plant in California and its motorcycle assembly plant in South Carolina.
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Question:
Zero Motorcycles has its engine assembly plant in California and its motorcycle assembly plant in South Carolina. Engines are transported between the two plants using trucks, with each trip costing $2,200. The motorcycle plant assembles and sells 250 motorcycles each day. Each engine costs $775, and Zero incurs a holding cost of 15 percent per year.
- What is the Annual Demand (D)?
- What is the Cost per Unit (C)?
- What is the Fixed Cost Incurred per Order (S)
- What is the Ordering Cost?
- What is the Annual Holding Cost (hC)?
- What is the Total Inventory Cost?
- What is the Cycle Inventory of engines at Harley?
- What is the Average Flow Time?
- What is the Average Flow Time resulting from the Cycle Inventory?
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