Rocky mountain tire center sells 8000 go-cart tires per, Ask an Expert

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Rocky Mountain Tire Center sells 8,000 ?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 ?$24 per tire if fewer than 200 tires are? ordered, ?$19 per tire if 200 or? more, but fewer than 8,000?, tires are? ordered, and ?$13 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 ?(enter your response as a whole?number).

b) What is the total cost of this policy?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92576529

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