Question
Tire Rack expects to sell approximately 10,040 tires of a certain size and tread design next year. Annual carrying cost is $16 per tire and
Tire Rack expects to sell approximately 10,040 tires of a certain size and tread design next year. Annual carrying cost is $16 per tire and ordering cost is $70. The distributor operates 284 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?
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Quantitative Methods For Business
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam
11th Edition
978-0324651812, 324651813, 978-0324651751
