Score: 12 of 20 pts | 4 of 4 (4 complete) Hw score: 56.25%, 45 of 80 pts Problem

Question

Score: 12 of 20 pts | 4 of 4 (4 complete) Hw score: 56.25%, 45 of 80 pts Problem 12.18 Question Help * 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 12.300 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? 685.13 units (round your response to two decimal places). b) How many production runs per year will be made? 17.95 production runs (round your response to two decimal places). c) What will be the maximum inventory level? 574.55 units (round your response to two decimal places). d what percentage of time will the facility be producing components? % enter your response as a po centage rounded to two decimal places

Explanation / Answer

Production rate of sub-components: 305 per day

Usage of these sub-components: 12,300 per year

To make 12,300 sub-components in a year, no of days required for the facility to produce would be: 12,300/350 = 40.33

Year being considered as 250 days, % time the facility would be producing is: (40.33/250)*100 = 16.13%

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