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 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 $40, and the holding cost is
40% of the purchase price of the tires per year. The purchase price
is $25 per tire if fewer than 200 tires are ordered, $16 per tire
if 200 or more, but fewer than 5000, - tires are ordered, and $14
per tire if 5000 or more tires are ordered.
a. How many tires should Rocky Mountains...
Rocky Mountain Tire Center sells 10,000 go-cart tires per year. The ordering cost for each order...
Rocky Mountain Tire Center sells 10,000 go-cart tires per year.
The ordering cost for each order is$40,and the holding cost is
50%of the purchase price of the tires per year. The purchase price
is $21 per tire if fewer than 200 tires are ordered,$19 per tire
if 200 or more, but fewer than 8,000 tires are ordered, and $13
per tire if 8,000 or more tires are ordered.
a) How many tires should Rocky Mountain order each time it
places...
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?
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