bmw has its engine plant in leipzig and its


BMW has its engine plant in Leipzig and its motorcycle assembly plant in Munich. Engines are transported between the two plants using trucks, with each trip costing $1,000. The motorcycle assembly plant assembles and sells 300 motorcycles each calendar day (365 days per year); each engine costs $500; and BMW incurs a holding cost of 20% per year. How many engines should BMW load onto each truck? What is the annual average inventory of engines at BMW?

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