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Management Studies

Blue Mountain Bike, Inc. (BMBI) makes racing bicycles. It produces 500 bicycles a month. The company purchases the tires for bicycles from Tire4Less, Inc. (TLI). The cost of each tire is $25. BMBI’s inventory carrying cost is estimated to be 20% of the cost of tire and the ordering cost is $48 per order.

For all questions that follow, round your answers to two (2) decimal places.

A- Calculate the EOQ for tires.

B- Calculate the cycle inventory for tires.

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