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Tesla is considering ordering tires from a new supplier, Goodstone Tire Company, which produces a brand of tire called the Rainpath. The transport and handling

Tesla is considering ordering tires from a new supplier, Goodstone Tire Company, which produces a brand of tire called the Rainpath. The transport and handling costs are $2600 each time a shipment of tires is ordered at the distribution center. The annual carrying cost is $3.75 per tire.

  1. Use the 2018 forecast below to determine the optimal order quantity and the minimum total annual cost.

Month 2018
January 1236
February 1876
March 3789
April 1600
May 2106
June 3471
July 1957
August 2337
September 4812
October 1700
November 2112
December 6069

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