Rocky mountain tire center sells 15000 go-cart tires per, Ask an Expert

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Rocky Mountain Tire Center sells 15,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 40% of the purchase price of the tires per year. The purchase price is $23 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 $14 per tire if 8,000 or more tires are ordered.

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

Rocky Mountain's optimal order quantity is ___ units (Round to whole number)

B) What is the total cost of this policy?

Total annual cost of ordering optimal order size=$___ (round response to nearest whole number)

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92527334

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