Example $12-2($Algo$)$

A local distributor for a national tire company expects to sell approximately $9,830$ tires of a certain size and tread design next year. Annual carrying cost is $$17$ per tire and ordering cost is $$77.$ The distributor operates $292$ 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