Question
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.
Question 1: What should the cost of each truck be if a load of engines is to be optimal for Harley?
Demand 2023 | Amount |
January | 3,285 |
February | 1,660 |
March | 7,354 |
April | 6,720 |
May | 15,148 |
June | 23,140 |
July | 22,306 |
August | 16,841 |
September | 2,906 |
October | 3,710 |
November | 2,841 |
December | 3,589 |
The trend for 2024 (assuming 365 operating days) is a growth of 3.17%. The fixed cost per order is $1000, 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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