1. harley davidson has its engine 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 3000 motorcycles a year. each engine costs $500, and harley incurs uses holding cost of 20 percent. how many engine should harley load into truck?

2. as part of its initiative to implement just in time manufacturer at the motorcycle assembly plant in exercise 1, harley has reduced the number of engines loaded on each truck to 100. if each truck trip still costs $1000, how does this decision impact annual inventory costs at harley? what should the cost of each truck be if a load of 100 engines is to be optimal for harley?