What is the annual cost of ordering and holding inventory

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Reference no: EM132231103

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 12,600 per year (of 250 working days). Holding costs are $2 per item per year, and ordering costs are $32 per order.

a) What is the economic production quantity? ----units (round to two decimal places)

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

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: EM132231103

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