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$; Harley incurs an annual holding cost of $20$ perCent per year. How many engines should Harley load onto each truck? What is the cycle inveritory of engines at Harley?

As part of its initiative to implement just$-$in$-$time $($JIT$)$ manufetcturing at the motorcycle assembly plant in Exercise $1,$ Harley has reduced the number of engines loaded on each truck to $100.$ If each truck trip still costs $$1,000,$ how does this decision affect annual inventory costs at Harley? What should the cost of each truck be if a load of $100$ engines is to be optimal for Harley?