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

Explain briefly how a leader can recognize regressive cycle, Describe brief...

Describe briefly how a leader can recognize a regressive cycle and what should the leader's response be?

Explain the market equilibrium conditions in this market, John Barks owns B...

John Barks owns Barks Computer Screens Inc. and wants to identify the supply and demand for screens in his market. The company can produce large screens called Wides or small scree

Product focused production system, Product Focused Production System ...

Product Focused Production System In this type of production processing, the production departments are organized according to the type of product / service being produced, a

Calculate the median for sample data, The Hilllcrest Golf and Country Club ...

The Hilllcrest Golf and Country Club manager selected a random sample of the members and recorded the number of rounds of golf they played last season. The reason for his interest

Explain direct effects and indirect effects of goals, What is the differenc...

What is the difference between direct effects and indirect effects of Goals on choice of strategy?

Estimate the mean and standard deviation, 1. How do variables and attribute...

1. How do variables and attributes differ?  2. Estimate the mean and standard deviation of the following measurements.

Describe how a company might benefit, Explain how a company might benefit f...

Explain how a company might benefit from the Contract Management Maturity Model. Can you suggest any viable reasons for a company's choosing not to conduct this assessment? If so,

What is acquisition management, In your own words, what do you think acquis...

In your own words, what do you think acquisition management is and what are your impressions on how it is done in the DoD?

Compute the seasonal index, A seasonal index for a monthly series is about ...

A seasonal index for a monthly series is about to be calculated on the basis of the past four years' accumulation of data. the four previous July values were 110, 135, 125, and 130

Explain supply managers have impact on economic trends, Why does the collec...

Why does the collective behavior of supply managers have such an impact on economic trends?

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