A company makes golf carts. It produces 450 carts a month. It buys the tires for carts from a supplier at a cost of $20 per tire. The company's inventory carrying cost is estimated to be 15% of cost and the ordering is $50 per order.
a. Calculate the EOQ In this problem:
b. What is the number of orders per year?
c. Compute the average annual ordering cost.
d. Compute the average inventory.
e. What is the average annual carrying cost?
f. Compute the total cost.