Rocky mountain tire centre sells 20000 tires of a, Ask an Expert

Management Studies

Rocky Mountain Tire Centre sells 20,000 tires of a particular type per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchase price of the tires per year. The purchase price is $20. per tire if fewer than 500 tires are ordered, $18. Per tire if more than 500 but fewer than 1,000 tires are ordered and $17. per tire if 1,000 or more tires are ordered. How many tires should Rocky Mountain order each time it places an order? Quantity Unit Price 1-499 $20. 500-999 $18. 1000 & over $17 Question 4 Based on available information, lead time demand for CD-ROM drives averages 50 units (normally distributed), with a standard deviation of 5 drives. Management wants a 97% service level.

1. What value of Z should be applied?

2. How many drives should be carried as safety stock?

3. What is the appropriate reorder point?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92247185

Have any Question?Write your Review or question?

Related Questions in Operation Management

Practice critical thinkinghow well do you understand this

Practice Critical Thinking How well do you understand this material? Reading the material is separate than understanding it; further, comprehending the material calls upon you to apply the theories and concepts through y ...

Any corporate entity is required to maintain control of all

Any corporate entity is required to maintain control of all its properties for its owners. The governing board and members of management are individually and collectively responsible for the prudent protection of assets. ...

1 discuss 3 employee motivation compensation performance or

1. Discuss 3 employee motivation, compensation, performance, or other issues related to human resources. What are three challenges and what 2 strategies would you propose using to address those issues (6 total strategies ...

Scenario your facility just announced without risk

Scenario: Your facility just announced (without risk management's knowledge) that they just partnered with The University, an out of state teaching medical center. This center evaluates stroke patients remotely through t ...

Your health care organization has had several small

Your health care organization has had several small compliance incidents in the past two years, and the organization is now motivated to update their compliance program. Your executive leadership team asked you to review ...

Topics of research from the following choose one of the

Topics of research from the following: ( choose one of the topics ) The effects of advertising on the consumer behavior of the public (in us buying the products advertised as consumers, and does it affect our buying deci ...

On march 11 2011 japan suffered from a triple

On March 11, 2011, Japan suffered from a triple disaster—a9.0 earthquake (its worst in recorded history), followed by a 20-foot tsunami, followed by a nuclear power plant accident that emitted harmful radiation. A lot of ...

What are marketing metrics and why are they importanthow a

What are Marketing Metrics and why are they important? How a does a Marketing Manager create a marketing campaign using marketing metrics? What is the difference between immediate and end-result marketing metrics? Give a ...

1 there is particular legislation regulations and industry

1. There is particular legislation, regulations and industry codes of practice that relates to the preparation of activity statements. List at least 10 forms of legislation, regulation or codes that will apply (in Austra ...

In many of the ppmp units you will have seen discussions

In many of the PPMP units you will have seen discussions about topics such as, systems thinking, systems engineering, and systems management. So too in this unit you also come across the concept of systems engineering an ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert