supply chain engineering

Problem 2. Harley purchases components from three suppliers. Components purchased from Supplier A are priced at $6 each and used at the rate of 25,000 units per month. Components purchased from Supplier B are priced at $5 each and are used at the rate of 1,850 units per month. Components purchased from Supplier C are priced at $8 each and used at the rate of 580 units per month. 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 $460 for the truck with an additional charge of $70 for each stop. Thus, if Harley asks for a pickup from only one supplier, the trucking company charges $530; from two suppliers, it charges $600; and from three suppliers, it charges $670. Suggest a replenishment strategy for Harley that minimizes annual cost. Assume a holding cost of 25 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 (ordering separately or complete aggregation)