Brown Pontiac maintains an inventory of tires. The dealer uses tires at a constant rate of $1,000.00

Question:

Brown Pontiac maintains an inventory of tires. The dealer uses tires at a constant rate of $1,000.00 per month. The dealer's cost of placing a new order is $500.00 per order. The cost of carrying a tire in inventory for a year is $12.00. Calculate the economic order quantity.

Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...