Tire company sells 6000 go cart tires per year total annual


Tire company sells 6000 go cart tires per year. The ordering cost for each order is $40 and the holding cost is 30% of the purchase price of the tires per year. The purchase price is $36 per tire is fewer than 200 tires are ordered $18 per tire if 200 or more but fewer than 5000 tires are ordered and $14 per tire if 5000 or more.

A. The optimal order quantity is

B. Total annual cost of ordering optimal order size is $____

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Operation Management: Tire company sells 6000 go cart tires per year total annual
Reference No:- TGS02441344

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