Example 12-2 (Algo)

A local distributor for a national tire company expects to sell approximately10,160 tires of a certain size and tread design next year. Annual carrying cost is $15 per tire and ordering cost is $85. The distributor operates282 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.)