1. 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, and 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?
2. As part of its initiative to implement just-in-time (JIT) manufacturing at the motorcycle assembly plant. Harley has reduced the number of engines loaded on each truck to 100. If each truck trip still cost $1,000, how does the decision impact annual inventory costs at Harley? What should the cost of each truck be if a load of 100 engines is to be optimal for Harley?
3. Weekly demand for Motorola cell phones at a Best Buy store is normally distributed, with a mean of 300 and a standard deviation of 200. Motorola takes two weeks to supply a Best Buy order. Best Buy is targeting a CSL of 95 percent and monitors its inventory continuously. How much safety inventory of cell phones should Best Buy carry? What should its ROP be?
4. Weekly demand for HP printers at a Sam's club store is normally distributed, with a mean of 250 and a standard deviation of 150. The store manager continuously monitors inventory and currently orders 1,000 printers each time the inventory drops to 600 printers. HP currently takes two weeks to fill an order. How much safety inventory does the store carry? What CSL does Sam's Club achieve as a result of this policy? What fill rate does the store achieve?