Questions.( 9 marks) a) Harley Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported between the two plants usingtrucks. 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?( 3 marks) Harley purchases components from three suppliers. Components purchased from Supplier A at price $5 each, and used at the rate of 20000 units per month. Components purchased from supplier B are priced at $4 each and used at the rate of 2,500 units per month. Components purchased from Supplier Care priced at $5 each and used at the rate of 900 units per month. Currently, Harley purchases a separate truck load from each supplier. As part of its JIT drive, Harley has decided to aggregate purchase 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 asked for a pick up from one supplier, charges $500; from two suppliers $600; and from three suppliers it charges $700. Suggest a replenishment strategy for Harley that minimizes annual cost. Harley incurs a holding cost of 20 percent per year. Compare the cost of your strategy with Harley's current strategy of ordering separately from each supplier. What is the cycle inventory of each component at Harley?( 6 marks) Questions.( 9 marks) marley 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 3 marks) Harley purchases components from three suppliers. Components purchased from Supplier A at price $5 each, and used at the rate of 20000 units per month. Components purchased from supplier B are priced at $4 each and used at the rate of 2,500 units per month. Components purchased from Supplier C are priced at $5 each and used at the rate of 900 units per month. Currently, Harley purchases a separate truck load from each supplier. As part of its JIT drive, Harley has decided to aggregate purchase 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 asked for a pick up from one supplier, charges $500, from two suppliers S600; and from three suppliers it charges $700. Suggest a replenishment strategy for Harley that minimizes annual cost. Harley incurs a holding cost of 20 percent per year. Compare the cost of your strategy with Harley's current strategy of ordering separately from each supplier. What is the cycle inventory of each component at Harley?( 6 marks)