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ountain order each time it places an order? antity is units (enter your response as a whole number).

ountain order each time it places an order? antity is units (enter your response as a whole number).

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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**Text for Educational Website:** **Scenario:** Rocky Mountain Tire Center sells 14,000 go-cart tires per year. The ordering cost for each order is $35, and the holding cost is 30% of the purchase price of the tires per year. The purchase price varies depending on the number of tires ordered: - $21 per tire if fewer than 200 tires are ordered. - $16 per tire if 200 or more, but fewer than 5,000 tires are ordered. - $14 per tire if 5,000 or more tires are ordered. **Question:** a) How many tires should Rocky Mountain order each time it places an order? **Response:** Rocky Mountain's optimal order quantity is [_____] units *(enter your response as a whole number)*. *Note: The goal is to determine the optimal order quantity, balancing ordering costs, holding costs, and the purchase price to minimize total costs.*
Transcribed Image Text:**Text for Educational Website:** **Scenario:** Rocky Mountain Tire Center sells 14,000 go-cart tires per year. The ordering cost for each order is $35, and the holding cost is 30% of the purchase price of the tires per year. The purchase price varies depending on the number of tires ordered: - $21 per tire if fewer than 200 tires are ordered. - $16 per tire if 200 or more, but fewer than 5,000 tires are ordered. - $14 per tire if 5,000 or more tires are ordered. **Question:** a) How many tires should Rocky Mountain order each time it places an order? **Response:** Rocky Mountain's optimal order quantity is [_____] units *(enter your response as a whole number)*. *Note: The goal is to determine the optimal order quantity, balancing ordering costs, holding costs, and the purchase price to minimize total costs.*
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