Question: Harley - Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported between the two plants using

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 $800. The motorcycle plant assembles and sells 480 motorcycles each day. Each engine costs $500, and Harley incurs a holding cost of 20% per year. Assume that Harley has 365 operating days.Suppose Harley loads 1200 engines onto each truck, what is the annual ordering cost for the engines at Harley?

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