Rocky Mountain Tire Center sells 15,000 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 $21 per tire if fewer than 200 tires are ordered, $18 per tire if 200 or more, but fewer than 8,000, tires are ordered, and $16 per tire if 8,000 or more tires are ordered. How many tires should be ordered each time an order is placed?
a. Rocky Mountains optimal order quantity is ?
b. Total annual cost of ordering optimal order size is
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