The Good stone Tire Company produces a brand of tire called the Rainpath

| April 14, 2018

The Good stone Tire Company produces a brand of tire called the Rainpath. The annual demand at its distribution center is 12,400 tires per year. The transport and handling costs are $2600 each time a shipment of tires is ordered at the distribution center. The annual carrying cost is $3.75 per tire.Determine the optimal order quantity and the minimum total annual cost.The company is thinking about relocating its distribution center, which would reduce transport and handling costs to $1900 per order but increase carrying costs to $4.50 per tire per year. Should the company relocate based on inventory costs?

Order your essay today and save 30% with the discount code: ESSAYHELP
Order your essay today and save 30% with the discount code: ESSAYHELPOrder Now