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Harley has implemented Just In Time (JIT) at the motorcycle assembly plant. As part of this initiative, it has reduced the number of engines loaded

Harley has implemented Just In Time (JIT) at the motorcycle assembly plant. As part of this initiative, it has reduced the number of engines loaded on each truck to 100. If each truck trip still costs $1,000, how does this decision impact the annual costs at Harley? What should the cost of each truck be if a load of 100 engines is to be optimal for Harley?

Demand 2023 Amount
January 3285
February 1660
March 7354
April 6720
May 15148
June 23140
July 22306
August 16841
September 2906
October 3710
November 2841
December 3589

The trend for 2024 (assuming 365 operating days) is a grow of 3.17%.

The fixed cost per order is $ 1,000, and the cost per engine is $ 500. The holding cost is 20% and the order quantity is 100. Use the moving average to calculate the demand for January 2024, compare it with the forecast obtained from exponential smoothing with trend and seasonality and give the profit.

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