Race One Motors is an Indonesian car manufacturer. At its largest manufacturing
ID: 469027 • Letter: R
Question
Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 315 per day, and it uses these subcomponents at a rate of 12, 300 per year (of 250 working days). Holding costs are $3 per item per year, and ordering costs are $31 per order What is the economic production quantity? units (round your response to two decimal places). How many production runs per year will be made? production runs (round your response to two decimal places). What will be the maximum inventory level? units (round your response to two decimal places). What percentage of time will the facility be producing components? % (enter your response as a percentage rounded to two decimal places).Explanation / Answer
EPQ, Q0 = 548.87
Run Time (Duration of one production run) = 548.87/315 = 1.74 days
Number of production runs per year = 22.41
Total production time per year = 22.41*1.74 = 39.05 days
% of time the facility will be producing components = Total production time per year / number of working days per year = 39.05/250 = 15.62%
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