What is the cycle inventory of engines at the company

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Reference no: EM13970551

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 between 300 motorcycles each day. Each Engine cost $500 and the company incurs a holding cost of 20 percent per year.

A) How many engines should Harley-Davidson load onto each truck?

B) What is the cycle inventory of engines at the company?

Reference no: EM13970551

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