Question

In: Math

A bicycle manufacturer buys 5000 tires a year from a distributor. It cost 6 to store one bicycle tire for a year.

A bicycle manufacturer buys 5000 tires a year from a distributor. It cost 6 to store one bicycle tire for a year. To re-order, there is a fixed cost of $24 per shipment plus $11 for each tire. How many times per year should the manufacturer order bicycle tires and in what lot size, to minimize inventory cost?

Solutions

Expert Solution

milcah answered 2 years ago
Next > < Previous

Related Solutions

A tire manufacturer believes that the life of its tires follow a normal distribution with a...
A tire manufacturer believes that the life of its tires follow a normal distribution with a mean of 46,000 miles and a standard deviation of 4,000 miles. What mileage can he guarantee each tire to last so that 99% of the tires last longer than the guaranteed lifetime?
1. A tire manufacturer determines at what temperature the tires will tend to bubble. In a...
1. A tire manufacturer determines at what temperature the tires will tend to bubble. In a sample of 21 tires, the mean temperature was 120 degrees F. with a standard deviation of 12 degrees. Construct the 98% confidence interval for the population mean. 2. The standard deviation of the length of 31 steel rods that are cut to be 3 feet is 0.023 feet. What is the 80% confidence interval for the population variance and the standard deviation? 3. In...
A manufacturer of a certain type of tires claims that their tire lifetime is 30,000 miles....
A manufacturer of a certain type of tires claims that their tire lifetime is 30,000 miles. The Bureau of Consumer Protection wants to conduct an preliminary investigation on this claim. a. If the true lifetime is only 29,000 miles, what is the chance that the Bureau won’t be able to detect such difference with data only on 16 tires? Assume that the SD of all tire lifetimes is about 1,500 miles. b. How many tires should the Bureau test on...
A tire manufacturer believes that the tread life of its snow tires can be described by...
A tire manufacturer believes that the tread life of its snow tires can be described by Normal model with a mean of 32,000 miles and a standard deviation of 2500 miles. a). If you buy a set of these tires, would it be reasonable for you to hope that they'll last 40,000 miles? Explain. b). Approximately what fraction of these tires can be expected to last less that 30,000 miles? c). Approximately what fraction of these tires can be expected...
A tire manufacturer claims that the life span of its tires is 52,000 miles. Assume the...
A tire manufacturer claims that the life span of its tires is 52,000 miles. Assume the life spans of the tire are normally distributed. You selected 16 tires at random and tested them. The mean life span of the sample is 50,802 miles. The tires had a population standard deviation, σ = 800. Use the .05 level of significance. a) Which distribution would be indicated? b) Explain why you chose that distribution. c) Construct a confidence interval for the mean...
The Tire Rack, America’s leading online distributor of tires and wheels, conducts extensive testing to provide...
The Tire Rack, America’s leading online distributor of tires and wheels, conducts extensive testing to provide customers with products that are right for their vehicle, driving style, and driving conditions. In addition, the Tire Rack maintains and independent consumer survey to help drivers help each other by sharing their long-term driving experiences. The following data show survey ratings (1 to 10 scale with 10 the highest rating) for 18 maximum performance summer tires. The variable Steering rates the tire’s steering...
The Tire Rack, America’s leading online distributor of tires and wheels, conducts extensive testing to provide...
The Tire Rack, America’s leading online distributor of tires and wheels, conducts extensive testing to provide customers with products that are right for their vehicle, driving style, and driving conditions. In addition, the Tire Rack maintains an independent consumer survey to help drivers help each other by sharing their long-term tire experiences. The following data show survey ratings (1 to 10 scale with 10 the highest rating) for 18 maximum performance summer tires. The variable Steering rates the tire’s steering...
The Tire Rack, America's leading online distributor of tires and wheels, conducts extensive testing to provide...
The Tire Rack, America's leading online distributor of tires and wheels, conducts extensive testing to provide customers with products that are right for their vehicle. The following data show survey ratings (1 to 10, with 10 being the highest) for 18 summer tires. Develop an estimated regression equation that can be used to predict the Buy Again rating given based on the Steering and Tread wear rating. How many percent of the variation in the Buy Again variable could be...
tire manufacturer claims that the life span of its tires is 60,000 miles. Assume the life spans of the tire are normally distributed.
tire manufacturer claims that the life span of its tires is 60,000 miles. Assume the life spans of the tire are normally distributed. You selected 25 tires at random and tested them. The mean life span of the sample is 58,800 miles. The tires had a sample standard deviation, s = 600. Use the .10 level of significance. Which distribution would be indicated? Explain why you chose that distribution. Construct a confidence interval for the mean using the above data....
On May 1, a tire store had a beginning inventory of 20 tires which it purchased...
On May 1, a tire store had a beginning inventory of 20 tires which it purchased for $300 each. On May 5th, the store purchased 4 more tires for $350 each. On May 12th, the store purchased 6 more tires for $400 each. In May, the store sold a total of 12 tires. Question: At the end of May, will the tire stores total assets on its balance sheet be higher if it uses the LIFO or weighted average inventory...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT