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Question 2. Harley-Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant in...

Question 2. 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 300 motorcycles each day. Each engine costs $500, and Harley incurs a holding cost of 20 percent per year.

A. How many engines should Harley load onto each truck?

B. What is the cycle inventory of engines at Harley?

C. Using the number of engines found in Part A, what is the total holding cost? D. Using the number of engines found in Part A, what is the total setup cost?

E. What is the total purchasing cost?

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keosha answered 2 years ago
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