Illustrate what is the total cost of this policy

Assignment Help Operation Management

Reference no: EM1373986

Q. Rocky Mountain Tire Center sells 15,000 go-cart tires per year. The ordering cost for each order is $50 and the holding cost is 15% of the purchase price of the tires per year. The purchase price is $18 per tire if fewer than 500 tires are ordered, $17 per tire if 500 or more-but fewer than 1,500-tires are ordered and $16 per tire if 1,500 or more tires are ordered.

Explain how many tires should Rocky Mountain order each time it places an order? Illustrate what is the total cost of this policy? Justify your answer and explain how calculations.

Reference no: EM1373986

Questions Cloud

Identify the areas of consumer surplus and producer surplus : Create a supply and demand graph and identify areas of customer’s surplus and producer surplus. Given the demand curve, determine what impact will an risee in supply have on amount of customer surplus shown in your diagram?

Problem on the capital structure : How do you judge a business's well-being from examining its capital structure and does it make a difference who you are

Explain how much will the layout improvement be worth : She estimates that the new layout will cut the amount of walking for the average employee by 100 miles per year. Explain how much will the layout improvement be worth.

Illustrate what is the probability that both service clerks : Illustrate what is the probability that both service clerks are idle. Explain how many customers, on average, are waiting in line in front of each service desk.

Illustrate what is the total cost of this policy : Explain how many tires should Rocky Mountain order each time it places an order. Illustrate what is the total cost of this policy. Justify your answer and explain how calculations.

Determine the marginal tax rate : Determine the marginal tax rate and the effective tax rate for each of the C corporations and describe why marginal tax rate for a C corporation can exceed 35%, but effective tax rate cannot.

Explain how many kanbans card sets are needed : Due to variations in processing times due to the size and length of the bracelets, it has been decided to keep 25 percent of the needed inventory as safety stock. Explain how many kanbans card sets are needed.

Compute the single exponential smoothing forecast : Compute the single exponential smoothing forecast for this information using an ad of .30 and an initial forecast. Compute the mean absolute deviation (MAD) for each forecast.

Evaluate gift card revenue : Explain how much gift card revenue related to with the August 2013 gift card sales would Lizzie get to recognize in 2013 and 2014?

User Account

All Pages