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Regardless of how many are shipped

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Jeep has an engine assembly plant in Detroit and a vehicle assembly plant in Chicago. Engines are transported between the two factories using trucks. Each truck trip costs $1,000 regardless of how many are shipped. The vehicle assembly plant assembles and sells 300 Jeeps per day. Each engine costs $500 and Jeep incurs a holding cost of 20% per year. Assume that there are 365 days in each calendar year.

How many engines should Jeep load onto each truck? (Show your work in solving this question)

Reference no: EM131106661

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