Question: Basic EOQ model Exercise 1: Car dealership A local distributor for a national tire company expects to sell approximately 9,600 radial tires of a certain

Basic EOQ model Exercise 1: Car dealership A
Basic EOQ model Exercise 1: Car dealership A local distributor for a national tire company expects to sell approximately 9,600 radial tires of a certain size and tread design next year. Annual carrying cost is $16 per tire, and ordering cost is $75. The distributor operates 288 days a year. A. What is the EOQ? B. How many times per year does the store reorder? C. What is the length of an order cycle? D. What will the total annual carrying and ordering costs be if the EOQ quantity is ordered

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