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 research on leader-member exchange, Write a 750-1,000-word paper th...

Write a 750-1,000-word paper that analyzes the two leadership case studies, "Coach Knight: A Will to Win" and "Coach K: A Matter of the Heart." Address the following questions a

Find what is the economic order quantity, The Central Valve Company sells i...

The Central Valve Company sells industrial valves and fluid control devices. One of Central's most popular valves, the Western, has an annual demand of 6,000 units. The price of ea

Number of shiments and number of defective shiments, The quesstion is to de...

The quesstion is to develop a scattr diagram using total number of shiments and number of defective shiments. This is for Project management mgmt. can some one help me with this

Explain the various classifications of stakeholders, An Organization: Its M...

An Organization: Its Mission and Strategic Intent In this assignment, you will decide on a company's strategic intent, its mission, and the role of stakeholders in developing an

Explain for bill what an enterprise resource planning, Describe for Bill wh...

Describe for Bill what an Enterprise Resource Planning (ERP) solution would look like for his UMUC Pizza business and how his business could benefit from implementing an ERP soluti

Explain organizational culture regarding staffing decisions, What is the re...

What is the relationship between the business strategy and an entity's organizational culture regarding staffing decisions? Is it possible to strengthen one without the other?

Explain partial health care benefits would be a good idea, Do you think tha...

Do you think that offering part-time employees partial health care benefits would be a good idea?

Explain how to identify stakeholders within a project, Normal 0 ...

Normal 0 false false false EN-IN X-NONE X-NONE

Explain internet for marketing communications, How you Google's do expected...

How you Google's do expected dominance of the online display advertising market will affect marketers who already use the Internet for marketing communications? Will its push into

Industrial relations, discuss the importance of a psychological contract

discuss the importance of a psychological contract

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