Explain what is the economic production quantity, Operation Management

Assignment Help:

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 per item per year, and ordering costs are $30 per order.

a) 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 percentage of time will the facility be producing components?

e) What is the annual cost of ordering and holding inventory?


Related Discussions:- Explain what is the economic production quantity

Explain ethical dilemma, Ethical Dilemma CRM: Targeting or Discriminating? ...

Ethical Dilemma CRM: Targeting or Discriminating? Are they ethical? Why or why not.

LEAN STNCHRONIZATION, what are the wastes and how to overcome them?

what are the wastes and how to overcome them?

Explain the elements in a hrmis, Describe the elements in a HRMIS and the r...

Describe the elements in a HRMIS and the role such a system plays in an organization's ability to meet its goals. If you are familiar with such a system, what information does it p

Environmental forces, Aska) what types of strategic plans must wild west ma...

Aska) what types of strategic plans must wild west make? Is the "doing-nothing" viable? If Wild west''s mission appears too broad, which business would you trim first? b) what env

Batch operations - operations function, Batch Operations - Operations Funct...

Batch Operations - Operations Function Batch systems form an intermediate category, and are the most common. Here, many different products are produced at regular or irregular

Depict the monthly sales data on a sheet of graph paper, 1. The monthly sal...

1. The monthly sales for Telco Batteries, Inc., were as follows: Month Sales Jan 20 Feb 21 Mar 15 Apr 14 May 13 Jun 16 Jul 17 Aug 18 Sep 20 Oct 20 Nov 21 Dec 23 a. Plot the m

Importance of performance measurement, Importance of performance measuremen...

Importance of performance measurement  1. Research reveals that many institutional investors are basing their decisions, in part, on a review of company's non financial perfor

Customisation - service process matrix, Customisation - Service Process Mat...

Customisation - Service Process Matrix Customisation reflects the degree to which the service provided is tailored to the needs of the customer. Organisations which have a hig

Explain organizational behaviour and productivity, How would you describe t...

How would you describe the culture of your organization? How does your organization "feel" (climate)? Where do you see the evidences of your organization's culture? How does the cu

State the term shamrock organisation, State the term Shamrock Organisation?...

State the term Shamrock Organisation? Shamrock Organisation: According to Charles Handy the 'Shamrock Organisation' used to apply a model to the workforce flexibility. Th

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd