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A local distributor for a national tire company expects to sell approximately 1 0 , 1 6 0 tires of a certain size and tread
A local distributor for a national tire company expects to sell approximately tires of a certain size and tread design next year. Annual carrying cost is $ per tire and ordering cost is $ The distributor operates days a year.
a What is the EOQ? Round your answer to a whole number.
EOQ
b How many times per year does the store reorder? Round your answer to two decimal points.
Number of Orders per Year
c What is the length of an order cycle? Round your answer to two decimal points.
Length of Order Cycle
d What will the total annual carrying and ordering cost be if the EOQ quantity is ordered? Round your answer to a whole number.
Total Annual Inventory Cost
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