Harley-Davidson has its engine assembly plant in Milwaukee, and its motorcycle assembly plant in York, Pennsylvania. Engines are transported between the two plants using trucks, with each trip costing $1,600. The motorcycle plant assembles and sells 100 motorcycles each day. (Assume 300 workdays in a year.) Each engine costs $600, and Harley incurs a holding cost of 25 percent per year.
a. How many engines should Harley load onto each truck?
b. How many trips are made each year transporting engines from Milwaukee to York?
c. How many work days are there between two successive trips? d. What is the cycle inventory of engines at the York plant?