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To solve the problem presented in the uploaded image, let's carefully analyze the given information and calculate the costs involved. Here’s a detailed step-by-step approach:

### Problem Analysis:

Harley purchases components from three suppliers: A, B, and C. Here are the details:

1. **Supplier A:**
   - Unit price: $5 per unit.
   - Purchase rate: 20,000 units per month.

2. **Supplier B:**
   - Unit price: $6 per unit.
   - Purchase rate: 2,500 units per month.

3. **Supplier C:**
   - Unit price: $5 each.
   - Purchase rate: 900 units per month.

Harley has traditionally used separate truckloads from each supplier. However, they are considering aggregating the components from these suppliers into a single shipment. The trucking costs depend on whether they use one, two, or three suppliers.

### Trucking Costs:
- Fixed cost per truck: $400.
- Additional cost per mile: $100 per each 100 miles.
  
For different numbers of suppliers, the trucking charges are:
- One supplier: $500.
- Two suppliers: $600.
- Three suppliers: $700.

### Goal:
Determine the cycle inventory cost of each component at Harley under the current purchasing strategy of using separate trucks and the proposed aggregated strategy.

### Step 1: Calculate the Total Purchasing Costs

1. **Cost from Supplier A:**
   \[
   \text{Total Cost from A} = 20,000 \times 5 = 100,000 \text{ dollars per month}
   \]

2. **Cost from Supplier B:**
   \[
   \text{Total Cost from B} = 2,500 \times 6 = 15,000 \text{ dollars per month}
   \]

3. **Cost from Supplier C:**
   \[
   \text{Total Cost from C} = 900 \times 5 = 4,500 \text{ dollars per month}
   \]

### Step 2: Calculate the Total Monthly Trucking Costs

**Current Strategy: Separate Trucks**

Each supplier uses a separate truck, so:
- Trucking cost for Supplier A: $500
- Trucking cost for Supplier B: $500
- Trucking cost for Supplier C: $500

\[
\text{Total Trucking Cost (Separate Trucks)} = 500 + 500 + 500 = 1,500 \text{ dollars per month}
\]

**Proposed Strategy: Aggregated Trucks**

If Harley aggregates the shipments:
\[
\text{Total Trucking Cost (Aggregated)} = 700 \text{ dollars per month}
\]

### Step 3: Total Cost Comparison

**Current Strategy:**
\[
\text{Total Cost (Separate)} = 100,000 + 15,000 + 4,500 + 1,500 = 121,000 \text{ dollars per month}
\]

**Proposed Strategy:**
\[
\text{Total Cost (Aggregated)} = 100,000 + 15,000 + 4,500 + 700 = 120,200 \text{ dollars per month}
\]

### Step 4: Decision and Analysis

Harley can save:
\[
121,000 - 120,200 = 800 \text{ dollars per month}
\]
by aggregating the shipments.

### Conclusion:
Aggregating the purchases from all three suppliers into one truckload would save Harley $800 per month compared to the current strategy of using separate trucks for each supplier.

### Questions for Further Analysis:
1. How would changes in supplier prices affect the overall costs?
2. What is the impact of varying the trucking costs (e.g., different mileage rates)?
3. How would increased or decreased purchasing rates from each supplier impact the strategy?
4. What are the potential risks associated with aggregating the shipments?
5. Can negotiating a better trucking rate further optimize the cost savings?

### Tip:
Always re-evaluate logistics costs when considering changes to purchasing strategies; minor adjustments can lead to significant savings.

Harley purchases components from three suppliers and is considering aggregating these purchases into a single shipment to reduce trucking costs. Determine the cycle inventory cost of each component under the current purchasing strategy using separate trucks versus the proposed aggregated strategy.

Explore how Harley can optimize its logistics by aggregating shipments from multiple suppliers. Learn about cost analysis techniques to compare separate and aggregated trucking strategies, with a detailed calculation of purchasing and trucking costs.

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