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Rocky Mountain Tire Center sells 13,000 ?go-cart tires per year. The ordering cost for each order...

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General Management

Rocky Mountain Tire Center sells 13,000 ?go-cart tires per year.The ordering cost for each order is ?$35?, and the holding cost is30?% of the purchase price of the tires per year. The purchaseprice is ?$21 per tire if fewer than 200 tires are? ordered, ?$16per tire if 200 or? more, but fewer than 5,000?, tires are?ordered, and ?$14 per tire if 5,000 or more tires are ordered.?Rocky? Mountain's optimal order quantity is 5000 units ?

?b) What is the total cost of this? policy? Total annual cost ofordering optimal order size equals? $_______ ?(round your responseto the nearest whole? number).

Answer & Explanation Solved by verified expert
3.9 Ratings (405 Votes)
Optimal order quantity QGiven Demand D 13000Ordering cost S 35Holding cost 30 of the purchase priceRangePrice    See Answer
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