Course Solutions Uncategorized (Answered) : Rocky Mountain Tire Center sells 15,000 ​go-cart tires per year. The ordering cost for each order is ​$40, and the holding c

(Answered) : Rocky Mountain Tire Center sells 15,000 ​go-cart tires per year. The ordering cost for each order is ​$40, and the holding c

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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