April 9, 2021
Reflecting on Healthcare Systems
April 9, 2021

Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the

company produces subcomponents at a rate of 300 per day, and it uses these subcomponents at a rate

of 12,500 per year (of 250 working days). Holding costs are $2.00 per item per year, and setup costs are

$30.0 per order.

4a. 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 is the annual cost of ordering and holding the subcomponent inventory?



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