1) Describe and evaluate Harley’s operations strategy (using the framework of Chapter 1).
2) Demand uncertainty is a major factor in strategic capacity decisions. How does Harley-Davidson take uncertainty into account in its planning processes? How does Harley-Davidson’s history affect its decision-making process?
3) What is your recommendation to Harley-Davidson? Complement your recommendation with an NPV analysis. Use a discount factor 12% and a marginal tax rate 37%. (Hint: You may start with forecasting future demand for Harley Davidson.)
4) What other qualitative factors should Harley-Davidson consider when analyzing the alternatives?