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Race One Motors is an Indonesian car manufacturer. At its largest facility, in Jakart, the company stocks sub-components and it them uses these subcomponents as

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Race One Motors is an Indonesian car manufacturer. At its largest facility, in Jakart, the company stocks sub-components and it them uses these subcomponents as part of their process. The daily demand for the subcomponent is 45 units. The company operates 265 day per year. Holding costs are 5%. Unit cost of the sub-component is $127.5. Ordering costs are $30 per order. Lead time for orders is 4 days. a. What is the economic ordering quantity? 335 b. How many orders need to be processed per year? c. What is the cost of managing the inventory? d. What is the ROP? e. What if Race One decided order 400 units as their ordering quantity, what would the new holding cost be? \$ Race One Motors is an Indonesian car manufacturer. At its largest facility, in Jakart, the company stocks sub-components and it them uses these subcomponents as part of their process. The daily demand for the subcomponent is 45 units. The company operates 265 day per year. Holding costs are 5%. Unit cost of the sub-component is $127.5. Ordering costs are $30 per order. Lead time for orders is 4 days. a. What is the economic ordering quantity? 335 b. How many orders need to be processed per year? c. What is the cost of managing the inventory? d. What is the ROP? e. What if Race One decided order 400 units as their ordering quantity, what would the new holding cost be? \$

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