Task 2: A tire store orders its stock for a popular winter tire once every year....

 

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Task 2: A tire store orders its stock for a popular winter tire once every year. The cost of a tire for the store is $100. The store sells a tire for $120 at the regular price. The regular demand per year is 1,000 tires, which is normally distributed with a standard deviation of 50 tires. Customers do not prefer to buy from an older stock; hence the store does not keep the tires for the next year. The store is able to sell the excess stock at a reduced price of $80 per tire. How many tires the store should order each year? [5 Marks] Task 2: A tire store orders its stock for a popular winter tire once every year. The cost of a tire for the store is $100. The store sells a tire for $120 at the regular price. The regular demand per year is 1,000 tires, which is normally distributed with a standard deviation of 50 tires. Customers do not prefer to buy from an older stock; hence the store does not keep the tires for the next year. The store is able to sell the excess stock at a reduced price of $80 per tire. How many tires the store should order each year? [5 Marks]

Answer rating: 100% (QA)

COST PRICE 100 SALES PRICE 120 SALVAGE VALUE 80 Cost of shortageCs sales price cost ... View the full answer