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Rocky Mountain Tire Center sells 2 0 , 0 0 0 go - cart tires per year. The ordering cost for each order is S
Rocky Mountain Tire Center sells gocart tires per year. The ordering cost for each order is S and the holding cost is of the purchase price of the tires per year.
The purchase price is $ per tire if fewer than tires are ordered, $ per tire if or morebut fewer than tires are ordered, and $ per tire if or more tires are ordered.
a How many tires should Rocky Mountain order each time it places an order?
b What is the total cost of this policy?
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