question archive Chicago Treadway tires dealer must order tires from its national warehouse

Chicago Treadway tires dealer must order tires from its national warehouse

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Chicago Treadway tires dealer must order tires from its national warehouse. It costs $10000 to place an order and $400 to review the inventory level. Annual tire sales are N(20000, 4000000). It cost $10 per year to hold a tire in inventory and each order arrives two weeks after being placed (52 week = 1 year). assume that all shortage are backlogged.Estimate R and the number of orders per year that should be placed.

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