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Harley-Davidson has its engine assembly plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines...

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; Harley incurs a holding cost of 20 percent per year. How many engines should Harley load onto each truck? That is the Total Inventory Cost? What is the Annual Ordering Cost? What is the Annnual Holding Cost ?

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Economic Order Quantity

Rahul Sunny answered 2 years ago
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