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Torrance Refinery produces approximately 20.0 Million barrels of gasoline per year. A California distributor sources its gasoline from the Torrance refinery. The annual demand for gasoline at the California distributor is 11.1 Million barrels. The cost of storing gasoline is approximately $21 per barrel (per year). The cost of placing an order to the Torrance refinery (including shipping) is $4400 per order. Orders will be received gradually instead of delivered all at once (hence EPQ).
How many days does each production run last at the Torrance Refinery to serve the California distributor?
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