Midwest tires has expected sales of 12000 tires this year, Finance Basics

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Midwest tires has expected sales of 12000 tires this year

Question: Midwest Tires has expected sales of 12,000 tires this year, an ordering cost of $6 per order, and carrying costs of $1.60 per tire.

a. What is the economic ordering quantity?

b. How many orders will be placed during the year?

c. What will the average inventory be?

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Finance Basics: Midwest tires has expected sales of 12000 tires this year

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Finance Basics: Midwest tires has expected sales of 12000 tires this year

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