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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.

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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