What will be the average inventory of fuel

Assignment Help Operation Management

Reference no: EM131477214

Jack owns a local trucking company. With fuel costs being expensive, Jack wants to evaluate how much fuel, on average, he should store in his 6,800 gallon fuel tank. Each year Jack uses 68,000 gallons of diesel (usage is spread evenly throughout the year). Jack knows with certainly that he can have a load of fuel delivered in 5 days. The price of fuel is $2.04 per gallon and there is a separate $50 ordering fee per order. Jack thinks his holding cost per unit is 40%. If Jack orders at EOQ, what will be the average inventory of fuel in his 6,800 gallon tank?

A. ~1,202 gallons

B. ~1,278 gallons

C. ~2,164 gallons

D. ~1,443 gallons

Reference no: EM131477214

Questions Cloud

Difference between the Resource column on the WBS : What is a control account, and what kinds of information does it contain? How does a control account fit into the structure of the PCAS?

The same effective financing rate from borrowing dollars : the same effective financing rate from borrowing dollars

Employment discrimination on the basis of race-color : Which of the acts provides for jury trials and punitive damages for employment discrimination on the basis of race, color, religion, gender, or national origin?

Boardrooms and conference centers of the corporate world : There's a scourge upon the boardrooms and conference centers of the corporate world.

What will be the average inventory of fuel : If Jack orders at EOQ, what will be the average inventory of fuel in his 6,800 gallon tank?

Adverse impact affirmative action minority dominance : disparate treatment adverse impact affirmative action minority dominance

Money european put option on this stock : What is the price of a 6-month At-the-Money European Put option on this stock if the volatility is 35%?

Virtue and ethics : Virtue and Ethics-What does a structured organization look like? How do the different structures compliment each other?

Significance of multiculturalism with regard to ethics : What is the significance of multiculturalism with regard to ethics?

User Account

All Pages