Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A local distributor for a national tire company expects to sell approximately 9 , 8 1 0 tires of a certain size and tread design

A local distributor for a national tire company expects to sell approximately 9,810 tires of a certain size and tread design next year. Annual carrying cost is $16 per tire and ordering cost is $80. The distributor operates 287 days a year.
a. What is the EOQ? (Round your answer to a whole number.)
b. How many times per year does the store reorder? (Round your answer to two decimal points.)
c. What is the length of an order cycle? (Round your answer to two decimal points.)
d. What will the total annual carrying and ordering cost be if the EOQ quantity is ordered? (Round your answer to a whole number.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding And Managing Public Organizations

Authors: Hal G. Rainey

4th Edition

047040292X, 978-0470402924

More Books

Students also viewed these General Management questions

Question

Describe the factors influencing of performance appraisal.

Answered: 1 week ago

Question

10-9 How have social technologies changed e-commerce?

Answered: 1 week ago