Total annual cost of ordering optimal order size

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Reference no: EM131181118

Rocky Mountain Tire Center sells 13,000 ?go-cart tires per year. The ordering cost for each order is ?$40?, and the holding cost is 50?% of the purchase price of the tires per year. The purchase price is ?$22 per tire if fewer than 200 tires are? ordered, ?$18 per tire if 200or? more, but fewer than 5,000 tires are? ordered, and $13 per tire if 5,000 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 5000units ?(enter your response as a whole? number).

?b) What is the total cost of this? policy?

Total annual cost of ordering optimal order size = $_____?(round your response to the nearest whole? number).

Reference no: EM131181118

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