Rocky mountain optimal order quantity

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Rocky Mountain Tire Center sells 13,000 go-cart tires per year. The ordering cost for each order is $35, and the holding cost is 30% of the purchase price of the tires per year. The purchase price is $21 per tire if fewer than 200 tires are ordered, $16 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. ?

a) How many tires should Rocky Mountain order each time it places an order?

Rocky Mountain's optimal order quantity is ______ units ? (enter your response as a whole number).

Reference no: EM132152349

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