What order quantity will enable the refinery to achieve the

Assignment Help Operation Management

Reference no: EM13390823

A refinery in Houston replaces all of the 3" full-open ball valves in its facility according to a very strict maintenance policy which spaces replacements fairly uniformly throughout the year. The refinery has approximately 1000 of these valves in place and safety regulations call for annual replacement. Ball valves are priced according to the schedule below. It costs $30 to place an order for valves and spare parts carrying costs are estimated at $7 per valve per year.

AMOUNT	PRICE
1 to 75	$22.50
76 to 119	20.00
120 +	18.25

What order quantity will enable the refinery to achieve the lowest total cost for the year in purchasing the 3" ball valves?

Reference no: EM13390823

Questions Cloud

The shop operates 20 days a month assume that demand is : a shop that makes candles offers a scented candle which has a monthly demand of 360 boxes. candles can be produced at a

The information necessary for preparing the 2013 year-end : the information necessary for preparing the 2013 year-end adjusting entries for vitos pizza parlor appears below. vitos

Based on the analysis what advice can you give fiatrsquos : your report and overview should address the following key strategic issuesconduct a complete study of the external

Bayliner company acquired the plant asset at beginning of : bayliner company acquired a plant asset at the beginning of year 1. the asset has an estimated service life of 5 years.

What order quantity will enable the refinery to achieve the : a refinery in houston replaces all of the 3 full-open ball valves in its facility according to a very strict

Explain how you would go about establishing an appropriate : you are a health care administrator for saint comfort medical center. you oversee many departments one of which is

There is some uncertainty about auction design which will : your company is bidding for a broadband spectrum license. you have been asked to submit an optimal bidding strategy.

Dentify the appropriate price strategy that should be used : use the product or service you selected for your marketing plan phase i paper.write a 300 -word summary that includes

In your textbook readings this week the rationale for a : in your textbook readings this week the rationale for a firmrsquos cooperate-level strategy is applied to cooperative

User Account

All Pages