Inventory Planning and Uncertainty Assessment
Module 3 • 10 Questions
Question 1 of 10
0 of 10 answered
A tire distributor expects to sell 9,600 tires next year, with a fixed ordering cost of \$75 per order and a holding cost of \$16 per tire per year, operating 288 days per year. What are the EOQ, the number of orders per year, and the cycle length?
A
Q* = 300 tires, 32 orders per year, 9-workday cycle; total annual holding plus ordering cost is \$4,800 with the two components equal at \$2,400 each.
B
Q* = 600 tires, 16 orders per year, 18-workday cycle.
C
Q* = 150 tires, 64 orders per year, 4.5-workday cycle.
D
Q* = 424 tires, 23 orders per year, 12.5-workday cycle.