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A motor cycle manufacturing plant uses approximately 32,000 tires annually. The plant operates 240 days a year, and within those days tires are used at a steady rate. If the annual holding cost for the plant is $3 per tire, and ordering cost is $120. Determine the following: a. What is the optimal order quantity (no decimal point)? b. Compute the order cycle (how many workdays are in an order cycle)?.

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A motor cycle manufacturing plant uses approximately 32,000 tires annually. The plant operates 240 days a year, and within those days tires are used at a steady rate. If the annual holding cost for the plant is $3 per tire, and ordering cost is $120. Determine the following: a. What is the optimal order quantity (no decimal point)? b. Compute the order cycle (how many workdays are in an order cycle)?

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