Question: EXERCISES Harley - Davidson has its engine assembly plant in Milwa and its motorcycle assembly plant in Pennsylvania. Eng are transported between the two plants

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?

EXERCISES Harley-Davidson has its engine assembly plant in Milwa and its

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