Explain what order quantity will enable the refinery, Operation Management

Assignment Help:

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?


Related Discussions:- Explain what order quantity will enable the refinery

Describe how advancing technologies in the security, Explain how advancing ...

Explain how advancing technologies in the security field are changing how end users are identified. In your response, identify potential security gaps that may be caused by these n

Explain the common grounds for discharge, Describe the common grounds for d...

Describe the common grounds for discharge and the procedural requirements that are outlined in many collective bargaining agreements. State why the following are important when the

Define the key planning factors for competitive success, What are the key p...

What are the key planning factors for competitive success? Provide an example of an organization that has achieved competitive success through planning. Provide an example of an or

Explain what factors might inhibit hrd managers, What factors might inhibit...

What factors might inhibit HRD managers from developing a strategic planning approach to training? How might these factors be overcome?

Explain measuring the impact of a capital acquisition, Measuring the impact...

Measuring the impact of a capital acquisition on productivity is an example of multifactor productivity.

Explain what is the current multifactor productivity, Question 1 of 6. Ambe...

Question 1 of 6. Amber Patel operates a delicatessen store in South Lambert, Nevada. Currently, the store has 4 employees, each one working 160 hours per month. Because of its exce

Compute the minimum replenishment time to build model, Calculate the minimu...

Calculate the minimum replenishment time to build 2500 Model A fountains given the following beginning inventories?

Explain recreation collects data on the number of cars, A state department ...

A state department of tourism and recreation collects data on the number of cars with out-of-state license plates in a state park. (The group's position is that more out-of-state p

Production, Production Production is any process or  procedure develope...

Production Production is any process or  procedure developed to transform a set  of input elements  such as men,  materials capital, information and energy into a specified set

Depict a control p-chart and interpret the data, A professor records the nu...

A professor records the number of students who complain each week throughout the semester. If the class size is forty students, what are 3-sigma control limits for this class? Cons

Write Your Message!

Captcha
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