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. Each
truck trip costs $1,800. The motorcycle plant assembles and sells 3200 motorcycles each
week. Each engine costs $600 and Harley incurs a holding cost of 20 percent per year.
How many engines should Harley load onto each truck? What is the cycle inventory of
engines at Harley?
1 answer
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4 answers