The Demand for Motorcycle Tires Imported by Dixie Import-Export Is

question 110

Multiple Choice

The demand for motorcycle tires imported by Dixie Import-Export is 40,000/year and may be assumed to be uniform throughout the year. The cost of ordering a shipment of tires is $400, and the cost of storing each tire for a year is $2. Determine how many tires should be in each shipment if the ordering and storage costs are to be minimized. (Assume that each shipment arrives just as the previous one has been sold.)

• A) 5,500
• B) 4,000
• C) 3,500
• D) 3,000

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Definitions:

Ruff Degradation

A chemical reaction used for the oxidation of aldoses to smaller aldoses.

NaBH4

Sodium borohydride, a reducing agent commonly used in the reduction of ketones and aldehydes to alcohols.

HNO3

Nitric acid, a highly corrosive and toxic strong acid used in the manufacture of fertilizers and explosives.

D-Tagatose

A ketohexose sugar related to fructose that has potential health benefits and is used as a low-calorie sweetener.