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 eah trip costing $1000. The motorcycle plant assembles and sells 300 motorcycles each day, assume 250 days per year. Each engine cost $500, and Harley incurs a holding cost of 20% per year
A) How many engines should Harley load onto each truck?
B) What is the cycle inventory of engines at Harley?
C) How many inventory turns does Harley achieve with this inventory policy?
D) What is the annual cost of this inventory policy
E) Harley is implementing JIT at the assembly plant and has reduced the nu,ber of engines loaded on each truck to 100. If each trip still costs $1000, how does this decision impact he annual inventory cost at harley
F) Which inventory policy should management choose? Excluding cost, What are some trade-offs between the policy in A) and the policy in B)