Rocky Mountain Tire Center sells 7,000 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 $23 per tire fewer than 200 tires are ordered, $19 per tire if 200 or more-but fewer than 5,000-tires are ordered, and $15 per tire if 5,000 or more tires are ordered. a) How many tires should Rocky Mountain order each time it places an order? Rocky Mountain's optimal order quantity is 5000 units (enter your response as a whole number). b) What is the total cost of this policy? Total annual cost of ordering optimal order size = $ (round your response to the nearest whole number).
Rocky Mountain Tire Center sells 7,000 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 $23 per tire fewer than 200 tires are ordered, $19 per tire if 200 or more-but fewer than 5,000-tires are ordered, and $15 per tire if 5,000 or more tires are ordered. a) How many tires should Rocky Mountain order each time it places an order? Rocky Mountain's optimal order quantity is 5000 units (enter your response as a whole number). b) What is the total cost of this policy? Total annual cost of ordering optimal order size = $ (round your response to the nearest whole number).
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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*Note: "163090" has been attempted and is not the correct answer to part B).
Transcribed Image Text:Rocky Mountain Tire Center sells 7,000 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 $23 per tire if
fewer than 200 tires are ordered, $19 per tire if 200 or more-but fewer than 5,000-tires are ordered, and $15 per tire if 5,000 or more tires are ordered.
a) How many tires should Rocky Mountain order each time it places an order?
Rocky Mountain's optimal order quantity is 5000 units (enter your response as a whole number).
b) What is the total cost of this policy?
Total annual cost of ordering optimal order size = $
(round your response to the nearest whole number).
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