Rocky mountain tire center sells 10000 go-cart tires per, Ask an Expert

Management Studies

Rocky Mountain Tire Center sells 10,000 go-cart tires per year. The ordering cost for each order is $35 , and the holding cost is 50% of the purchase price of the tires per year. The purchase price is $22 per tire if fewer than 200 tires are ordered, $18 per tire if 200 or more, but fewer than 8,000, tires are ordered, and $16 per tire if 8,000 or more tires are ordered.

A ) How many tires should Rock Mountain order each time it places an order?

Rocky Mountain's optimal order quantity is __ units (enter your response as a whole number)

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91881130

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