# (Solved) Use the following statement to answer questions 13-15: Harley Davidson purchases components from three suppliers.

Use the following statement to answer questions 13-15:

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Harley Davidson purchases components from three suppliers. Components purchased from Supplier A are priced at \$ 5 each and used at the rate of 200,000 units per year. Components purchased from Supplier B are priced at \$ 4 each and are used at the rate of 50,000 units per year. Components purchased from Supplier C are priced atÂ \$ 5 each and used at the rate of 22,800 units per year. 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 \$ 400 for the truck with an additional charge of \$100 for each stop. Thus, if Harley asks for a pickup from only one supplier, the trucking company charges \$ 500; from two suppliers it charges \$ 600; and from three suppliers it charges \$ 700. Harley incurs a holding cost of 20% (of the price) for each component.

Question 13 (1 point)

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What is the minimal annual inventory cost of the new aggregate replenishment strategy ?Â

Question 13 options:

\$25242

\$19181

\$0

\$19614

\$23677

Question 14 (1 point)

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What is the minimal annual inventory cost of the Harleyâ€™s current strategy of ordering separately from each supplier ?

Question 14 options:

\$25242

\$19614

\$23677

\$0

\$19181

Question 15 (1 point)

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How much is the saving resulted ?

Question 15 options:

\$4063

\$6060

\$7020

\$5174

\$0

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This question was answered on: Mar 27, 2022

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Mar 27, 2022

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