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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 12,400 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)
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