1. Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 290 per day, and it uses these subcomponents at a rate of 12,800 per year (of 250 working days). Holding costs are $2 per item per year, and ordering costs are $31 per order.
a) What is the economic production quantity? units (round your response to two decimal places).
2. Air cargo is often perceived as overnight air cargo. Explain the other variations of air cargo? How does it work and what companies might benefit from different variations of air cargo?