Reference no: EM132710359
The NY taxi company uses a gasoline at a consistent rate with the with following details:
Demand = 200,000 gallons per year
Ordering charge = $40 per order
Gasoline evaporation and storage cost = 10% per year
Gasoline cost per gallon = $1.80
Number of working days per year = 250 days
a. How much gasoline should the company purchase with each order, i.e., determine the economic order quantity.
b. What is the average inventory level for the gasoline?
c. What is the total annual ordering and carrying cost?
d. What is the penalty if the company can purchase only 6500 gallons at each order due to the tank's holding capacity?
e. Should the company spend $446 to have an additional storage tank installed?
Discuss about the international economics
: The goal of the International Economics course was to provide you with an introduction to both the micro and macro components of international economics.
|
Find how garner arrives at the order-filling cost per unit
: Garner Industries, The firm uses an activity-based costing system. Demonstrate how Garner arrives at the $35.73 order-filling cost per unit.
|
Cost implications of reactive maintenance
: How is preventative maintenance related to predictive maintenance? What are the cost implications of reactive maintenance? provide at least one example.
|
Find socially optimal level of contributions to public good
: Two individuals have identical utility functions defined on X, a private good (cookies), and F, a public good (fireworks). Define as F = F1 + F2 where Fi.
|
Compute average inventory level for gasoline
: The NY taxi company uses a gasoline at a consistent rate with the with following details:
|
How calculate at least three profitability ratios
: How Calculate at least three profitability ratios for each company, such as gross profit margin, net profit margin, return on assets, or operating profit margin
|
Explain the effects of low price-guarantee on the price
: Explain the effects of low price-guarantee on the price. If a group of sellers could form a cartel, what quantity and price would they try to set?
|
What is the economic order quantity for pepperoni
: Lead time for each order is 3 days, and pepperoni itself costs $3 per pound. What is the economic order quantity for pepperoni?
|
Explain lean operations-total productive maintenance
: Describe potential ethical or sustainability consideration associated with Lean operations or total productive maintenance (TPM).
|