Rocky Mountain Tire Center sells 8,000 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 $20 per tire if fewer than 200 tires are ordered, $19 per tire if 200 or more, but fewer than 8,000, tires are ordered, and $13 per tire if 8,000 or more tires are ordered. a) How many tires should Rocky Mountain order...
Rocky Mountain Tire Center sells 9,000 go-cart tires per year. The ordering cost for each order is $35, 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 $13 per tire if 8,000 or more tires are ordered. a) How many tires should Rocky Mountain order...
Rocky Mountain Tire Center sells 13,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 50% of the purchase price of the tires per year. The purchase price is $26 per tire if fewer than 200 tires are ordered, $16 per tire if 200 or more, but fewer than 5,000, tires are ordered, and $13 per tire if 5,000 or more tires are ordered. a) How many tires should Rocky Mountain order...
Rocky Mountain Tire Center sells 11,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 50% of the purchace price of the tires per year. The purchase price is $25 per tire if fewer than 200 tires are ordered, $18 per tire is 200 or more - but fewer than 8000 - tires are orderd and $13 per tire if 8,000 or more tires are ordered. a. How many tires should Rocky...
Rocky Mountain Tire Center sells 13,000 gocart tires per year. The ordering cost for each order is $35, and the holding cost is 50% of the purchase price of the tires per year. The purchase price is $25 per tire if fewer than 200 tires are ordered, $18 per tire if 200 or more, but fewer than 5,000, tires are ordered, and $14 per tire if 5,000 or more tires are ordered. a) How many tires should Rocky Mountain order...
A local distributor for a national tire company expects to sell 9600 radial tires per year. Annual carrying cost is $16 per tire, and ordering cost is $75 per order. The distributor operates 288 days in a year. The lead time to receive the order is 3 days. (a) What is the economic order quantity? (b) What is the reorder point? (c) What is the total annual cost of inventory and ordering? (d) What is the number of cycles in...
Question 16 (2 points) 16. Suppose that a bicycle manufacturer, Klec, has decided to order tires from a tire supplier for next year. Klec needs to determine how many tires should be ordered for each shipment next year. Total demand for tires (D) is 10,000. Ordering cost for each shipment (A) is 1,000. Inventory holding cost for each unit (h) is 5. Suppose that Klec uses the basic EOQ model. Which of the following is true? a) Q' is 2,000...
72. Ace Tire recaps tires at a cost of $20 per tire. Past experience shows that 12% of the recapped tires must be sold as seconds for $25. If they recap 400 tires and a markup of 100% of cost is desired, find the regular selling price per tire. 78. A store sells yogurt marked with a last date of sale. The owners pay 31 cents a container and use a markup of 38% of selling price. On the last...
alladega Tire and Rubber Company has capacity to produce 119,000 tires. Talladega presently produces and sells 91,000 tires for the North American market at a price of $102 per tire. Talladega is evaluating a special order from a European automobile company, Autobahn Motors. Autobahn is offering to buy 14,000 tires for $84.4 per tire. Talladega’s accounting system indicates that the total cost per tire is as follows: Direct materials $39 Direct labor 14 Factory overhead (60% variable) 23 Selling and...
Here is the first part of the question Task 1. A wholesale distributor stocks and sells low flow toilets to contractors for use in commercial office buildings. The estimated annual demand for the toilets is 5,475 units. The estimated average demand per day is 18 units. The purchase cost from the toilet manufacturer is $135.00 per unit. The lead-time for a new order is 5 days. The ordering cost is $90.00 per order. The average holding cost per unit per...