Explain what is the total cost of this policy, Operation Management

Assignment Help:

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 purchase price of the tires per year. The purchase 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 ordered 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?


Related Discussions:- Explain what is the total cost of this policy

Explain what kind of industries does a localization strategy, What kind of ...

What kind of industries does a localization strategy makes sense? Why? When does a global standardization strategy make most sense? Why?

Explain the term organisation structure, Explain the term organisation stru...

Explain the term organisation structure. It is the systematic arrangement of the people doing work for the organisation so as to achieve predecided goals.  This structure is

Describe disadvantages of each of these approaches, McDonalds traditional p...

McDonalds traditional process to make-to-stock; Wendy's has a make-to-order and burger king has a process which is a hybrid of the other two. Discuss the advantages and disadvantag

Explain exempt and non-exempt employees, Differentiate between (1) exempt a...

Differentiate between (1) exempt and non-exempt employees and (2) line and staff employees.

Explain operations management definiton of logistics, Netflix would be an e...

Netflix would be an example of which of the following approaches to managing customer induced variation? Cost penalties Uncompromised reduction Classic reduction Classic accomm

How to find the optimum number of units, A manufacturing company sells its ...

A manufacturing company sells its products directly to customers and operates 5 days a week, 52 weeks a year. The production department of this company can produce at the rate of 6

Explain the overall goal is to reduce arbitrary, Seniority can have various...

Seniority can have various provisions, such as bumping rights; but, the overall goal is to reduce arbitrary or discriminatory treatment of employees by using a quantifiable, object

Explain the major components of hr planning and forecasting, Discuss the ma...

Discuss the major components of hr planning and forecasting efforts.

Explain various stressors in such an environment, Today, employers are usin...

Today, employers are using employees more and more in a matrixed environment. What does that mean? How can we contend with the various stressors in such an environment? How do we m

Operational layout , Put Simply, operational layout is about deciding where...

Put Simply, operational layout is about deciding where to put all the facilities, machines, equipment and the staff with in the operation. For an organization of you choice discuss

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd