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A small manufacturer of mountain bikes located in Denver, Colorado, buys tires from a supplier in China. There is a monthly demand of 200 tires. The cost of placing an order is $200 and the holding cost is $24 per tire per year. If the purchasing price is $45 per tire and the economic order quantity is used, what is the total annual inventory cost?

A small manufacturer of mountain bikes located in Denver, Colorado, buys tires from a supplier in China. There is a monthly demand of 200 tires. The cost of placing an order is $200 and the holding cost is $24 per tire per year.   If the purchasing price is $45 per tire and the economic order quantity is used, what is the total annual inventory cost?

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