What is the cycle inventory of engines

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Harley-Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant in Pennsylvannia. Engines are transported between the two plants using trucks, with each trip costing $1,000. The motorcyle plant assembles and sells 300 motorcyles each day. Each engine costs $500; 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?

Reference no: EM13957512

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