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

Assignment help, discuss the advisability using modular assemblies in manuf...

discuss the advisability using modular assemblies in manufacturing or what are the advantages and disadvantages?

Explain competitive position through differentiation, In both Europe and No...

In both Europe and North America, established airlines are desperately cutting costs in order to compete with the increasing number of budget airlines. However, it is highly unlike

Case study...distribution problem at rollerblade, what is the problem that ...

what is the problem that you can understand by reading the above situation? how appropriate might a just in time inventory system be for product such as roller skates

Quality management., examples of internal and external failure cost

examples of internal and external failure cost

Explain what are the benefits of working for someone else, • What are the ...

• What are the challenges? What are the challenges of being an entrepreneur? What are the challenges of starting and building your own compan What are the benefits... •

Explain practical lessons derived from equity theory, Type your question he...

Type your question here to what extent are Michelle Rhees changes consistent with the practical lessons derived from equity theory? Explain.

Explain what would be the danger of your hospital, Assume you are the respo...

Assume you are the responsible senior executive of a hospital in a city with a population of 30,000 people, located about 50 miles away from a large city. What would be the danger

QUALITY TIPS, QUALITY TPIS ON EFFECTIVE PLANNINGuestion #Minimum 100 words ...

QUALITY TPIS ON EFFECTIVE PLANNINGuestion #Minimum 100 words accepted#

Explain project activity including personal time, A cost estimate for a giv...

A cost estimate for a given project activity is $6,300; this cost estimate does not factor in personal time. Assuming that an allowance for personal time is 9.5%, the total estimat

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