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Case Study: 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 ?$21 per tire if fewer than 200 tires are? ordered, ?$17 per 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.
Questions:
a) How many tires should Rocky Mountain order each time it places an? order?
b) What is the total cost of this? policy?
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