inventory models of independent demand 12.18 a. b. c. d. e.

i) that the ordering (setup) cost is not $20, and Cotteleer has been ordering 150 units each time an order is placed. For this order policy (of Q 150) to be optimal, determine what the ordering (setup) cost would have to be 12.18 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 subcompo- nents at a rate of 12,500 per year (of 250 working days). Holding costs are $2 per item per year, and ordering (setup) costs are $30 per order. a) hat 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? Fx 12.19 Radovilsky Manufacturing Company, in Hayward California, makes flashing lights for toys. The company operates I, L rdars for about