Answer Happy

QUESTION 23 A local distributor for a national tire company expects to sell approximately 5000 tires (this is the expected annual demand, D) of a certain size and tread design next year. Annual carrying cost is $5 per tire (H) and ordering cost is $20 per an order. Based on the optimal order quantity (EOQ), select the correct choice The total carrying costs are $400 and this is exactly the same as the total ordering costs The total carrying costs are $400 and this is NOT exactly the same as the total ordering costa The total carrying costs are $500 and this is exactly the same as the total ordering costs. The total carrying costs are $500 and this is NOT exactly the same as the total ordering costo