Register
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
102k views
5 votes
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 comma 400 per year​ (of 250 working​ days). Holding costs are ​$3 per item per​ year, and ordering costs are ​$29 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?

User Ben ODay
by
3.8k points

1 Answer

3 votes

Answer:

a. 534.23

b. 23.21

c. $448.75

d. 16.26%

e. $1,346.22

Step-by-step explanation:

PLEASE CHECK ATTACHMENT FOR COMPLETE SOLUTION AND STEP BY STEP EXPLANATION

Race One Motors is an Indonesian car manufacturer. At its largest manufacturing​ facility-example-1
Race One Motors is an Indonesian car manufacturer. At its largest manufacturing​ facility-example-2
User Derui Si
by
3.8k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

3.4m questions

4.3m answers

Other Questions

How can expansionary​ expenditure-based fiscal policy lead to crowding out in the​ economy? A. ​Expenditure-based fiscal policy increases the national​ debt, inducing​ forward-looking households and firms
Stevenson Company purchased equipment for $250,000 on January 1, 2010. The estimated salvage value is $50,000, and the estimated useful life is 5 years. The straight-line method is used for depreciation.
In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his
The method of appraisal in which the appraiser estimates the replacement cost of the building, deducts depreciation, and adds the value of the site is:________
The Yum and Yee food truck near the business school serves customers during lunch hour by taking orders and making fresh batches of stir-fry. Customers have only one choice during the lunch hour so that
Link Copied!