4. a company makes bicycles. it produces 450 bicycles a month. it buys the tires for bicycles from a supplier at a cost of $20 per tire. the company’s inventory carrying cost is estimated to be 15% of cost and the ordering is $50 per order. calculate the economic order quantity (eoq). then from this solution, also calculate the number of orders per year, and average annual ordering cost.

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.