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Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 305 per day, and it uses these subcomponents at a rate of 12,200 per year (of 250 working days). Holding costs are $33 per item per year, and ordering costs are $29 per order.

a) What is the economic production quantity? (round your response to two decimal places).

b) How many production runs per year will be made? (round your response to two decimal places).

c) What will be the maximum inventory level? (round your response to two decimal places).

d) What percentage of time will the facility be producing components? (round your response to two decimal places).

e) What is the annual cost of ordering and holding inventory? (round your response to two decimal places).

Operation Management, Management Studies

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