Annual cost of ordering and holding inventory

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Reference no: EM132197120

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 12,400 per year (of 250 working days). Holding costs are $2 per item per year, and ordering costs are $31 per order.

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

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

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

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

Reference no: EM132197120

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