Question
In: Statistics and Probability
Rocky Mountain Tire Center sells 6,000 go-cart tires per year. The ordering cost for each order...
Rocky Mountain Tire Center sells 6,000 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 $23 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.
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).
b) What is the total cost of this policy? The total annual cost of ordering optimal order size equals $ ____ (round your response to the nearest whole number).
Solutions
orchestra answered 1 year agoRelated Solutions
Rocky Mountain Tire Center sells 14,000 ?go-cart tires per year. The ordering cost for each order...
Rocky Mountain Tire Center sells 14,000 ?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 ?$19
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
?$14per tire if
5,000
?a) How many tires should Rocky Mountain order each time it
places an? order?...
Rocky Mountain Tire Center sells 8,000 go-cart tires per year. The ordering cost for each order...
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 $24 per tire if fewer than 200 tires are ordered, $19 per tire
if 200 or more, but fewer than 5,000 tires are ordered, and $13 per
tire if 5,000 or more tires are ordered.
a. How many tires should Rocky Mountain order...
Rocky Mountain Tire Center sells 22,000 go-cart tires per year. The ordering cost for each order...
Rocky Mountain Tire Center sells 22,000 go-cart tires per year.
The ordering cost for each order is $45, and the holding cost is
20% of the purchase price of the tires per year. The purchase price
is $25 per tire if fewer than 500 tires are ordered, $20 per tire
if 500 or more—but fewer than 1,000—tires are ordered, and $18 per
tire if 1,000 or more tires are ordered.
a. How many tires should Rocky Mountain order each time...
Rocky Mountain Tire Center sells 13,000 ?go-cart tires per year. The ordering cost for each order...
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 comma 000?, tires are?
ordered, and ?$14 per tire if 5,000 or more tires are ordered.
?
a) How many tires should...
Rocky Mountain Tire Center sells 13,000 ?go-cart tires per year. The ordering cost for each order...
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.
?Rocky? Mountain's optimal order quantity is 5000 units...
Rocky Mountain Tire Center sells 13 comma 000 go-cart tires per year. The ordering cost for...
Rocky Mountain Tire Center sells 13 comma 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 $22 per tire if fewer than 200 tires are ordered,
$18 per tire if 200 or more, but fewer than 5 comma 000 , tires are
ordered, and $16 per tire if 5 comma 000 or more tires are...
the KIA company needs 6000 car tires per year. the ordering cost for these is 120$...
the
KIA company needs 6000 car tires per year. the ordering cost for
these is 120$ per order and the holding cost is assumed to be 50%
of the per unit cost. in orders of less than 225 tires cost $80.
for orders of 225 or more, the cost drops to $70 per unit. should
KIA take advantage of the quantity discount?
For an EOQ ordering quantity of 750 units, an ordering cost of $5 per order, a...
For an EOQ ordering quantity of 750 units, an ordering cost of
$5 per order, a holding cost of $10 per unit per year, and an
annual demand of 900 units, what is the annual total cost for this
value of Q?
The Grilton Tire Company manufactures racing tires for bicycles. Grilton sells tires for $50 each. Grilton...
The Grilton Tire Company manufactures racing tires for bicycles.
Grilton sells tires for $50 each. Grilton is planning for next year
(2020) by developing a master budget by quarters. Grilton’s balance
sheet for December 31, 2019 follows:
GRILTON TIRE COMPANY
Balance Sheet
December 31, 2019
Assets
Current Assets:
Cash $ 39,000
Accounts
Receivable 40,000
Raw Materials
Inventory 2,400
Finished Goods
Inventory 8,700
Total Current
Assets $
90,100
Property, Plant and Equipment:
Equipment 177,000
Less: Accumulated
Depreciation (42,000) 135,000
Total
Assets $225,100
Liabilities
Current Liabilities:
Accounts
Payable $ 8,000
Stockholder’s Equity
Common Stock,...
The Gessing Tire Company manufactures racing tires for bicycles. Gessing sells tires for $85 each. Gessing...
The Gessing Tire Company manufactures racing tires for bicycles.
Gessing sells tires for $85 each. Gessing is planning for the next
year by developing a master budget by quarters. Gessing’s balance
sheet for December 31, 2018, follows:
Gessing Tire Company| Balance sheet |December 31, 2018
Current Assets:
Cash
$
52,000
Accounts Receivable
35,000
Raw Materials Inventory 1,900
Finished Goods Inventory 2,400
________
Total Current Assets
$
91,300
Property, Plant, and Equipment:
Equipment
142,000
Less: Accumulated Depreciation (50,000)
92,000
_________
________...
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