Engines are transported between the two plants using trucks

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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. a. How many engines should Harley load onto each truck? b. What is the cycle inventory of engines at Harley?

Reference no: EM13962494

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