Question: 2 ( 5 0 pts ) A local distributor for a national tire company expects to sell approximately 9 , 6 0 0 steel -
pts A local distributor for a national tire company expects to sell approximately steelbelted radial tires of a certain size and tread design next year. Annual carrying cost is $ per tire, and ordering cost is $ order. The distributor operates days a year, and the lead time to receive an order from its upstream supplier is three working days.
apts What is the Economic Order Quantity EOQ
bpts How many orders per year are expected?
cpts What is the expected time between orders?
dpts Find the total annual inventory costs if the EOQ quantity is ordered.
epts If ordering costs were to increase by $ per year, how much would that affect the minimum total annual cost?
fpts What is the reorder point?
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