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

ASK, If you were the professor and you knew what was going through Vincent?...

If you were the professor and you knew what was going through Vincent?s mind, what would you say to Vincent?

Explain what is a bfoq and will it allow acme university, ACME University i...

ACME University is hiring a new basketball coach for its men's basketball team. Carla Coach applies for the position. An official of the University contacts Carla and tells her tha

Operations and supply chain management, Operations and Supply Chain Managem...

Operations and Supply Chain Management XYZ Inc distributes and sells tyres. While most of XYZ's sales come from earthmover and industrial tyres, they also stock and sell a ver

Explain specific crimes in which digital forensics is used, Digital forensi...

Digital forensics can encompass many areas of inquiry, including information network analysis and source code analysis. Describe three specific crimes in which digital forensics ca

Explain communication behaviours destroy trust, One of the most important f...

One of the most important factors determining whether organizations and their members will be high performance is the presence of trust between leaders and followers. What types of

Explain how does the market demand curve change, How does the market demand...

How does the market demand curve change (as a function of marketing expenditure) during recession? a. Shifts downward b. Remains unaffected c. Becomes ver

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