Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces sub
components at a rate of 305 per day, and it uses these subcomponents at a rate of 12 comma 400 per year (of 250 working days). Holding costs are $3 per item per year, and ordering costs are $29 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?
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?
1 answer:
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Answer:
Option C is correct.
Explanation:
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Wages in US would decrease
Wages in Mexico would increase
Explanation:
The increase in the supply of labour in the US while demand remains unchanged would lead to an excess of supply over demand. This would cause equilibrium wage to fall and quantity to rise.
While in the US, the supply of labour would fall. This would increase wage.
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