Question $1$B

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 $$1,500.$ The motorcycle plant assembles

and sells $250$ motorcycles each day. Each engine costs $$600,$ and Harley incurs a holding cost of $25$ percent per year.

What is the Optimal Lot Size $($Economic Order Quantity $($EOQ$)=Q^{**}?$

What is the Optimal Number of Orders per year?

What is the Total Annual Ordering and Holding Cost?

What is the Average Flow Time?