How many tires should rocky mountains tire order each time

Assignment Help Operation Management

Reference no: EM13231664

Rocky Mountain Tire Center sells 20,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchace price of the tires per year. The purchease price is $20 per tire if fewer than 500 tires are ordered, $18 per tire is 500 or more - but fewer than 1000 - tires are orderd and $17 per tire if 1,000 or more tires are ordered.

a. How many tires should Rocky Mountains tire order each time it time it places an order?

b. What is the total cost of this policy?

Reference no: EM13231664

Questions Cloud

What about the concession stand inside the theater : If a local movie theater sells tickets at different prices (senior citizens versus young people, matinee versus evening prices) is the local movie theater a monopoly What about the concession stand inside the theater

How do you define the frequency or cycling : Filters exist in natural systems, biosystems, psychsystems, mechanical, etc. Give an example of filtering in nonelectronic area

Determine what is equilibrium price and output : Demand for flower bouquets in a suburban town is described by: QD = 50 - 5 P + 2 Y, where Q is quantity, P is price per unit, and Y is an index of consumer income. Similarly, supply is described by QS = 10 P - 5. a) If Y = 100, what is equilibrium..

Define the penicillin resistance and transformation reaction : You also wantto insert a gene for penicillin resistance that is 435 bp in sizeand your PCR product, the E. coli cells during the transformation reaction

How many tires should rocky mountains tire order each time : How many tires should Rocky Mountains tire order each time it time it places an order?

Political and economic turmoil of the 17th century : The religious, political, and economic turmoil of the 17th century forced European monarchs to try and stabilize their kingdoms. Using the examples of Holland, France and England

What will happen to output and the price level in short run : Suppose the Fed expands the money supply, but because the public expects this Fed action, it simultaneously raises its expectation of the price level. What will happen to output and the price level in the short run

What are some examples of regional products : Is there a fundamental difference between regional and global products?

Death in religious wars in medival europe : Why was there less death in religious wars in medival europe compared to the previous wars which were a lot more bloody?(16th-18thcentury)

User Account

All Pages