Question

QUESTION 17A tire shop changes about 4,250 tires per year, 14 percent of which are off-road tires. All off-road tires are purchased from an outside supplier at a cost of

S75 each. The shop uses a holding cost based on a 18 percent annual interest rate. The setup cost for placing an order is estimated to be $20.Determine the optimal number of off-road tires the shop tire shop should purchase each time an order is placed. (Round to the nearest integer)

Fig: 1