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Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the Industry produces subcomponents at a rate of 300 per day and it uses these subcomponents at a rate of 12,500 per year (of 250 working days). Holding costs are $2 per item per year and ordering costs are $30 per order.

a) Illustrate what is the economic production quantity?

b) Explain how many production runs per year will be made?

c) Illustrate what will be the maximum inventory level?

d) Illustrate what percentage of time will the facility be producing components?

e) Illustrate what is the annual cost of ordering and holding inventory?