EXERCISES

Harley$-$Davidson has its engine assembly plant in Milwa and its motorcycle assembly plant in Pennsylvania. Eng are transported between the two plants using trucks, with trip costing $$1,000.$ The motorcycle plant assembles and s $300$ motorcycles each day. Each engine costs $$500$; Har incurs an annual holding cost of $20$ percent per year. $H$ many engines should Harley load onto each truck? What is cycle inventory of engines at Harley?