Management

Homework Chapter $12,$ Inventory $-$ Quantity Discounts HW Problem # $25($a$),($b$)$ Homework Due $11/20/24$ midnight

$12\mathrm{.}25$ Rocky Mountain Tire Center sells $20,000$ go$-$cart tires per year. The ordering cost for each order is $$40,$ and the holding cost is $20\%$ of the purchase price of the tires per year. The purchase price is $$20$ per tire if fewer than $500$ tires are ordered, $$18$ per tire if $500$ or more$-$but fewer than $1,000-$tires are ordered, and $$17$ per tire if $1,000$ or more tires are ordered.

a$)$ How many tires should Rocky Mountain order each time it places an order?

b$)$ What is the total cost of this policy? $P{K}_x$