Question $1$B

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, with each trip costing $$1,500.$ The motorcycle plant assembles

and sells $250$ motorcycles each day. Each engine costs $$600,$ and Harley incurs a holding cost of $25$ percent per year.

What is the Optimal Lot Size $($Economic Order Quantity $($EOQ$)=Q^{**}?$

What is the Optimal Number of Orders per year?

What is the Total Annual Ordering and Holding Cost?

What is the Average Flow Time?

Question $2$

Using EOQ, Ducati motorbikes is building a plant in the US and will import the engines from Italy. Engines are

transported between the two locations using planes and trains, with each trip costing $$2,500.$ The motorcycle plant

assembles and sells $150$ motorcycles each day. Each engine costs $$750,$ and Harley 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 Ducati?

What is the Average Flow Time resulting from the Cycle Inventory?