Question: please answer question 2 For Questions 1, 2 and 3, use the following information: Harley purchases components form three suppliers. Components purchased from Supplier A
please answer question 2
For Questions 1, 2 and 3, use the following information: Harley purchases components form three suppliers. Components purchased from Supplier A are priced at $30 each and used at a rate of 20,000 units per year. Components purchased from Supplier Bare priced at $40 each and are used at the rate of 2,000 units per year. Components purchased from Supplier Care priced at $50 each and used at the rate of 800 units per year. Currently, Harley purchases a separate truckload from each supplier. Harley has decided to aggregate purchases from the three suppliers into a single truckload. The trucking company charges a fixed cost of $3000 for each order and an additional charge of $500 for each stop at a supplier. Thus, currently Harley incurs a fixed order cost of $3500 (= 3000 + 500) for ordering each component separately, but Harley wants to place joint orders for the three components (not necessarily with the same quantity) which would incur a fixed order cost of $4500 (= 3000 + 500+ 500+ 500). Harley incurs uses holding cost of 25 percent. Question 2 10 pts What is the total cycle-inventory cost (holding and ordering cost only - do not include material cost) for Harley if it places joint orders for the three components? Less than $40,000 Between $40,000 and $45,000 Between $45,000 and $50,000 More than $50,000 O Between $50,000 and $55,000

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