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Question 2 Using EOQ, Ducati motorbikes is building a plant in the US and will import the engines from Italy. Engines are transported between the

Question 2
Using EOQ, Ducati motorbikes is building a plant in the US and will import the engines from Italy. Engines are
transported between the two locations using planes and trains, with each trip costing $2,500. The motorcycle plant
assembles and sells 150 motorcycles each day. Each engine costs $750, and Harley incurs a holding cost of 15 percent
per year.
What is the Annual Demand (D)?
What is the Cost per Unit (C)?
What is the Fixed Cost Incurred per Order (S)
What is the Ordering Cost?
What is the Annual Holding Cost (hC)?
What is the Total Inventory Cost?
What is the Cycle Inventory of engines at Ducati?
What is the Average Flow Time resulting from the Cycle Inventory?
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