The total cost of procurement be the lowest

Assignment Help Operation Management
Reference no: EM131487277

United Airlines has an agreement to buy jet fuel from Exxon. The goal is to minimize total cost (i.e., ordering cost + holding cost). The annual demand for fuel is 58,000 barrels. Exxon charges United $2300 to process each order. United incurs a holding cost of $24 per barrel.

At what order quantity will the total cost of procurement be the lowest?

Reference no: EM131487277

Questions Cloud

Focusing on mainly design and reliability : Why are they key drivers that keeps customers loyal to the iPhone? focusing on mainly design and reliability
Primary components of the strategic management process : describe and define the primary components of the strategic management process.
Calculate the average number of transmissions : Calculate the average number of transmissions that are waiting to be fixed. What is the utilization?
Network managed by a network management system : network managed by a network managed by a network management system.
The total cost of procurement be the lowest : At what order quantity will the total cost of procurement be the lowest?
Values for dual variables from final simplex tableau : The sales volume for A is at least 50% ofthe total sales of all three products. Determine the values for the dual variables from the final simplex tableau.
What is the mean length of utterance : What is the mean length of utterance (MLU) of the sentence "I get along with older kids"?
Support connectionist theories of language acquisition : Which of the following is not piece of evidence usually advanced to support Connectionist theories of language acquisition?
Making an ethical decision : Identify ethical issues that arise in domestic-global business environments using understanding of ethical concepts and of legal and business principles.

Reviews

Write a Review

Operation Management Questions & Answers

  Order to ensure that vital consumer information

What can marketers and organizations do in order to ensure that vital consumer information is private and that consumers feel comfortable visiting their websites and participating in data research?

  What is the optimal number of handbags to purchase

The buyer for a department store must decide on the quantity of a designer women's handbag to procure in Italy for the upcoming fall fashion season. The unit cost of the handbag to the store is $30.00 and the handbag will sell for $150.00. What is th..

  What are questionable payments and why are they problematic

What are questionable payments and why are they problematic ? Explain globalization and the relationship with informational technology. What should managers know about doing business in Saudi Arabia?

  Businesses appear to fit the business market definition

The company is Senior's First Choice and is a non medical in home care company focused toward seniors wishing to age in place or in home. What specific types of businesses appear to fit the business market definition for this company?

  What principle s would you use in order to prioritize the

toolscorp corporation is a fictitious company that does not exist anywhere. for the purpose of this course we have

  Best exemplifies multiple-baseline design

Which of the following scenarios best exemplifies a multiple-baseline design? Ewa is an athletic trainer at the university. She conducts research on violence in sport. She has designed a study to examine the effects of a new sportsmanship class.

  Discussion and learning about the services industry

Discussion and learning about the services industry

  Firm in the domestic market and international markets

Unilever is a firm choose at least one product sold by the firm in the domestic market and international markets. made a report on the significant differences in the characteristics of the brand in different area or country. There could be changes in..

  Variables discussed in module work affect the business

Choose a company with which you are familiar or that you work for/have worked for in the past and identify how variables discussed in this module’s work affect the business. Be sure to touch on at least three concepts discussed in this module and to ..

  Email aspects not to be overlooked in business transaction

Important email aspects not to be overlooked in a business transaction are: The importance of privacy is different from individual to individual, community to community and organization to organization. Regulations in cyberspace should develop in wha..

  Use directive counselling or nondirective counselling

What are some criteria that help you determine whether to use directive counselling or nondirective counselling at work? Give an example of each in the form of a brief dialog?

  Participate in the project implementation

Speculate what would happen if a step is not completed in the project management process? What are the consequences for all stakeholders? For example, what would be the potential pitfalls if a stakeholder decided not participate in the project implem..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd