Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subco
mponents at a rate of 300 per day, and it uses these subcomponets 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?
This channel is appropriate when a producer is trying to introduce an innovative product or service and wants to reach a large audience. The best way a manufacturer or producer can sell its products or services directly to consumer is through internet sales.
Answer: The correct answer is "the informal rules of the game".
Explanation: The given scenario illustrates <u>the informal rules of the game.</u>
<u>Because despite not being an official standard, it is an informal rule that the company tends to follow because it gives good results, and is backed by the organizational culture of the company.</u>