Rocky Mountain Tire Center sells 9,000 go-cart tires per year. The ordering cost for each order is $40, and theholding cost is 40% of the purchase price of the tires per year. The purchase price is $22 per tire if fewer than 200tires are ordered, $19 per tire if 200 or more-but fewer than 8,000-tires are ordered, and $13 per tire if 8,000 ormore tires are ordered.a) How many tires should Rocky Mountain order each time it places an order?Rocky Mountain's optimal order quantity isb) What is the total cost of this policy?Total annual cost of ordering optimal order size = $units (enter your response as a whole number).(round your response to the nearest whole number).

Answered: Rocky Mountain Tire Center sells 9,000…

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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Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 3,000 rolls. The cost per roll is $1,000, and the annual holding cost is 28 percent of the cost. Each order costs $75. Part 2 a. How many rolls should Yellow Press order at a time? Yellow Press should order enter your response here rolls at a time. (Enter your response rounded to the nearest whole number.) Part 3 b. What is the time between orders? (Assume 200 workdays per year.) The time between orders is enter your response here days. (Enter your response rounded to one decimal place.)
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