# Sabrina_Funes_6.6 Additional Homework Exercises.docx -...

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Chapter 11 - Managing Economies of Scale in a Supply Chain: Cycle Inventory Exercises 1 and 2 (page 306) 3. 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 \$1,000. The motorcycle plant assembles and sells 300 motorcycles each day. Each engine costs \$500; 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? 1 trip of a single truck=\$ 1000 Daily sales per motorcade=300, each engine cost= \$ 500 Total cost of engine sold daily= 500*300, \$150000 *12= \$1800000 Holdings=0.2*1800000= 360000
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• Spring '12
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• Internal combustion engine, Motorcycle, Harley, Harley-Davidson

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