Last two questions are incorrect. Please help me! OM300-101 Summer-2 2018 Ashley
ID: 435045 • Letter: L
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Last two questions are incorrect. Please help me! OM300-101 Summer-2 2018 Ashley Vanderhoof&1 8/2/18 8:40 AM Homework: HW10 - Chapter 12 Save Score: 2 of 4 pts 13 of 18 (18 complete) ? Hw Score: 95.92%, 47 of 49 pts Instructor-created question Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces suboomponents at a rate of 305 per day Question Help and it ujes 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? 678 units (round your response to two decimal places). b) How many production runs per year will be made? 18.27 production runs (round your response to two decimal places). o) What will be the maximum inventory level? 568.15 units (round your response to two decimal places) d) What is the annual cost of ordering and holding inventory? $ 1245.04 (round your response to two decimal places). Enter your answer in the edit fieids and then click Check Answer All parts showing Clear All Final CheckExplanation / Answer
Annual demand, D = 12400
Demand rate, d = 12400/250 = 49.6
Production rate, p = 305
Ordering cost, S = $ 31
Holding cost, H = $ 2
a) Economic Production Quantity, EPQ = SQRT(2DS/(H*(1-d/p))) = SQRT(2*12400*31/(2*(1-49.6/305))) = 677.53
b) Production runs per year = D/Q = 12400/677.53 = 18.30
c) Maximum inventory level = Q*(1-d/p) = 677.53*(1-49.6/305) = 567.35
d) Annual cost of ordering and holding inventory = (D/Q)*S + H*Q*(1-d/p)/2 = 1134.70
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