Advanced Engineering Mathematics
Advanced Engineering Mathematics
10th Edition
ISBN: 9780470458365
Author: Erwin Kreyszig
Publisher: Wiley, John & Sons, Incorporated
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54. A small manufacturer of mountain bikes located in Denver, Colorado, buys tires from a supplier in China. The manufacturer has a monthly demand of 200 tires. The cost of placing an order is $200, and the holding cost is $24 per tire per year, Il the purchasing pros is $45 per tire, and the economic order quantity is used, what is the total annual ordering cost? a. $1,386 b. $2,400 c. $4,800 d. $20,000 e. 5683
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Transcribed Image Text:54. A small manufacturer of mountain bikes located in Denver, Colorado, buys tires from a supplier in China. The manufacturer has a monthly demand of 200 tires. The cost of placing an order is $200, and the holding cost is $24 per tire per year, Il the purchasing pros is $45 per tire, and the economic order quantity is used, what is the total annual ordering cost? a. $1,386 b. $2,400 c. $4,800 d. $20,000 e. 5683
53 A math lab at a community college must keep ink cartridges in inventory so that when a printer is running out of ink, it is immediately replaced. Historical data from the last 10 years has been used to forecast a monthly demand of 16 cartridges for the coming calendar year. It has been estimated that it costs 1.6% of the cartridge price to keep an ink cartridge in inventory for one year. The cost of placing an order is two dollars and the purchasing price is $30 per unit. What is the economic order quantity? 126 units O4 units O 13 units 40 units
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Transcribed Image Text:53 A math lab at a community college must keep ink cartridges in inventory so that when a printer is running out of ink, it is immediately replaced. Historical data from the last 10 years has been used to forecast a monthly demand of 16 cartridges for the coming calendar year. It has been estimated that it costs 1.6% of the cartridge price to keep an ink cartridge in inventory for one year. The cost of placing an order is two dollars and the purchasing price is $30 per unit. What is the economic order quantity? 126 units O4 units O 13 units 40 units
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