How many production runs per year will be made

Assignment Help Project Management

Reference no: EM131259746

Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company 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 (setup) costs are $30 per order

a) What is the economic production quantity?

b) How many production runs per year will be made?

c) What will be the maximum inventory level?

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

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

Reference no: EM131259746

Questions Cloud

How many orders per year are needed with the optimal policy : To minimize cost, how many units should be ordered each time an order is placed? - How many orders per year are needed with the optimal policy?

What does approach as x increases : Physiology. In a study on the speed of muscle contraction in frogs under various loads, researchers W. O. Fems and J. Marsh found that the speed of contraction decreases with increasing loads

What amount of cost of goods sold must be reported : Karlow Corporation owns 70 percent of Draw Company’s voting shares. During 20X3, Karlow produced 31,000 computer desks at a cost of $92 each and sold 16,000 of them to Draw for $104 each. What amounts of cost of goods sold did Karlow and Draw record ..

What does the term infographics mean : What are some ways to evaluate the use of digital media on the internet? For example, what are some criteria that you can use to measure different resources against each other? What would make one resource better or more effective then another? Mo..

How many production runs per year will be made : What is the economic production quantity? - How many production runs per year will be made? - What will be the maximum inventory level?

What is the optimal size of the production run : What is the optimal size of the production run? - What is the average holding cost per year? - What is the average setup cost per year?

What is the optimum production quantity : What is the optimum production quantity? - What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite?

What personal characteristics would be useful : Make the following lists, explaining why you chose each one. Justify at least two different considerations: What personal characteristics would be useful? What demographic factors would strongly influence a person's future?

What is the optimal order quantity : What is the optimal order quantity and the minimum annual cost for Bell Computers to order, purchase, and hold these integrated chips?

User Account

All Pages