Total annual cost of ordering optimal order size

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Reference no: EM131136092

Rocky mountain tire center sells 12,000 go cart tires per year. The ordering cost for each order is $35, and the holding cost is 40% of the purchase price of the tires per year. The purchase price is $18 per tire if fewer than 200 tires are orderd, $16 per tire if 200 or more are ordered, but fewer than 8,000 tires are ordered, and $13 per tire if 8,000 or more tires are ordered.

A) How manny tires should rocky Mountain order each times it places an order?

Rocky mountains optimal order quantity is ____ units?

B) what is the total cost of this policy?

Total annual cost of ordering optimal order size= $_____

Reference no: EM131136092

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