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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 290 per day, and it uses these subcomponents at a rate of 12,700 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? 690.88 units (round your response to two decimal places). b) How many production runs per year will be made? 18.38 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).

Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 290 per day, and it uses these subcomponents at a rate of 12,700 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? 690.88 units (round your response to two decimal places). b) How many production runs per year will be made? 18.38 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).

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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**Race One Motors Inventory and Production Analysis** Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 290 per day, and it uses these subcomponents at a rate of 12,700 per year (of 250 working days). Holding costs are $2 per item per year, and ordering costs are $31 per order. --- **Questions and Calculations:** a) **What is the economic production quantity?** - **Answer:** 690.88 units (round your response to two decimal places). b) **How many production runs per year will be made?** - **Answer:** 18.38 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). --- This analysis helps in determining efficient production and inventory strategies for the company's subcomponent manufacturing process.
Transcribed Image Text:**Race One Motors Inventory and Production Analysis** Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 290 per day, and it uses these subcomponents at a rate of 12,700 per year (of 250 working days). Holding costs are $2 per item per year, and ordering costs are $31 per order. --- **Questions and Calculations:** a) **What is the economic production quantity?** - **Answer:** 690.88 units (round your response to two decimal places). b) **How many production runs per year will be made?** - **Answer:** 18.38 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). --- This analysis helps in determining efficient production and inventory strategies for the company's subcomponent manufacturing process.
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