Engine assembly plant and motorcycle assembly plant

Reference no: EM13190064

HD has its engine assembly plant in New York and its motorcycle assembly plant in LA. Engines are transported between the two plants using trucks, with each trip costing $1,000. The motor plant assembles and sells 300 motor each day. Each motors costs $500, and HD incurs a holding cost of 20% per year.

(i) How many motors should HD load onto each truck? What is the cycle time of inventory of gear at HD? Graph the variable costs and total cost as a function of order quantity.

(ii) If the lead time to ship the engines from New York to LA is 2 weeks, what is the reorder level at the assembly plant in LA (assume 7 days per week)?

(iii) As part of its initiative to implement just-in-time (JIT) manufacturing at the motor assembly plant, HD has reduced the number of motors loaded on each truck to 100. If each truck trip still costs $1,000, how does this decision impact annual inventory costs at HD compared to the EOQ value? What should the cost of each truck be if a load of 100 motors is to be optimal for HD?

Reference no: EM13190064

Questions Cloud

Evaluates the gross pay of a set of employees : Write a C program that will calculate the gross pay of a set of employees - determines both the overtime hours (anything over 40 hours) and the gross pay, and outputs

What is the per-worker production function : Assuming no population growth or technological progress, find the steady-state capital stock per worker, output per worker, and consumption per worker as a function of the saving rate and the depreciation rate.What is the per-worker production fun..

Explain examples are brcl and ibr and brfand clf : Examples are BrCl, IBr, BrF, and ClF. Which compound is expected to have the highest boiling point aqt any given pressure? Please explain why

Why other bases might be better in certain circumstances : We also discussed rotations of common shapes in the plane using a change-of-base. Walk through one or two examples and discuss how the "usual" basis {(1,0) and (0,1)} can be limiting. Does this suggest why other bases might be better in certain ci..

Engine assembly plant and motorcycle assembly plant : HD has its engine assembly plant in New York and its motorcycle assembly plant in LA. Engines are transported between the two plants using trucks, with each trip costing $1,000. The motor plant assembles and sells 300 motor each day. Each motors cost..

Explain the common anion is the nitrate ion : which you might separate (a) K+ from Ag+, (b) Ba2+ from Pb2+, (c) NH4+ from Ca2+, and (d) Ba2+ from Cu2+. All cations are assumed to be in aqueous solution, and the common anion is the nitrate ion.

What would the population equal 100 years from now : Suppose the world population today is 7 billion, and suppose this population grows at a constant rate of 3% per year from now on. (This rate is almost certainly much faster than the future population growth rate)

What is the trial form for the particular solution : What is the trial form for the particular solution of y''+9y=2sin(3x)-1? State the trial form only. you don't need to solve it.

Define the density of the hydrogen peroxide solution : The density of the hydrogen peroxide solution is 1.01 g/ml and the solution contains 3.40% H2O2 by mass. The vapor pressure of water at 24 celsius is 22mmHg. Based on this data and information calculate the molar volume at STP.

User Account

All Pages