Problem 12-2 (Algo) A local distributor for a national tire company expects to sell approximately 9.780 tires of a certain size and tread design next year. Annual carrying cost is $18 per tire and ordering cost is $85. The distributor operates 283 days a year. a. What is the EOQ? (Round your answer to a whole number.) EOQ b. How many times per year does the store reorder? (Round your answer to two decimal points.) Number of Orders per Yea c. What is the length of an order cycle? (Round your answer to two decimal points.) Length of Order Cycle d. What will the total annual carrying and ordering cost be if the EOQ quantity is ordered? (Round your answer to a whole number.) Total Annual Inventory Cost
Problem 12-2 (Algo) A local distributor for a national tire company expects to sell approximately 9.780 tires of a certain size and tread design next year. Annual carrying cost is $18 per tire and ordering cost is $85. The distributor operates 283 days a year. a. What is the EOQ? (Round your answer to a whole number.) EOQ b. How many times per year does the store reorder? (Round your answer to two decimal points.) Number of Orders per Yea c. What is the length of an order cycle? (Round your answer to two decimal points.) Length of Order Cycle d. What will the total annual carrying and ordering cost be if the EOQ quantity is ordered? (Round your answer to a whole number.) Total Annual Inventory Cost
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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![Problem 12-2 (Algo)
A local distributor for a national tire company expects to sell approximately 9,780 tires of a certain size and tread design next year.
Annual carrying cost is $18 per tire and ordering cost is $85. The distributor operates 283 days a year.
a. What is the EOQ? (Round your answer to a whole number.)
EOQ
b. How many times per year does the store reorder? (Round your answer to two decimal points.)
Number of Orders per Year
c. What is the length of an order cycle? (Round your answer to two decimal points.)
Length of Order Cycle
d. What will the total annual carrying and ordering cost be if the EOQ quantity is ordered? (Round your answer to a whole number.)
Total Annual Inventory Cost](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe9c485f-7800-42c6-9e2a-230c778c41ae%2F29bd307b-136a-4917-90cf-a99d48061613%2F5in3q4b_processed.png&w=3840&q=75)
Transcribed Image Text:Problem 12-2 (Algo)
A local distributor for a national tire company expects to sell approximately 9,780 tires of a certain size and tread design next year.
Annual carrying cost is $18 per tire and ordering cost is $85. The distributor operates 283 days a year.
a. What is the EOQ? (Round your answer to a whole number.)
EOQ
b. How many times per year does the store reorder? (Round your answer to two decimal points.)
Number of Orders per Year
c. What is the length of an order cycle? (Round your answer to two decimal points.)
Length of Order Cycle
d. What will the total annual carrying and ordering cost be if the EOQ quantity is ordered? (Round your answer to a whole number.)
Total Annual Inventory Cost
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