Question

Enfield has its vehicle assembly plant in Tiruvottiyur, Chennai, and its engine assembly
plant in Oragadam near Chennai. Engines are transported between the two plants using
trucks, with each trip costing Rs. 2000. vehicle plant assembles and sells 250 motorcycles every day. Each engine costs Rs. 25000, and MCL incurs a holding cost of 24 % per year.

How many engines should MCL load onto each truck? (i.e. what is the optimal order
quantity?)

Answer 1

Answer:

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