How many tires should order each time it places an order


Rocky Mountain Tire Center sells 15,000 tires of a particular type per year. The ordering cost for each order is $30, and the holding cost is 20% of the purchase price of the tires per year. The purchase price is $20 per tire if fewer than 500 tires are ordered, $18 per tire if 500 or more - but fewer than 1,000 tires are ordered, and $17 per tire if 1,000 or more tires are ordered. How many tires should Rocky Mountain order each time it places an order?

Request for Solution File

Ask an Expert for Answer!!
Operation Management: How many tires should order each time it places an order
Reference No:- TGS089465

Expected delivery within 24 Hours