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

ERP, DETAIL THE WORKFLOW OF HRM THAT DEPLOYES ERP

DETAIL THE WORKFLOW OF HRM THAT DEPLOYES ERP

Define what kind of industries does a localization strategy, What kind of i...

What kind of industries does a localization strategy makes sense? Why? When does a global standardization strategy make most sense? Why?

Describe imagine that you are the release that might result, Search the new...

Search the news for a current event/ issue/ crises a company is dealing with today. Imagine that you are the release that might result in a favourable article. Follow the format su

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

What is business process re-engineering, What is Business process re-engine...

What is Business process re-engineering? Business process re-engineering (BPR): The basic redesign of existing business processes to attain enhancements in critical areas

Explain what are the issues of management, What are the issues of managemen...

What are the issues of management does the Rhino Capture in Kruger National Park face and how are they analysed and evaluated?

Explain can you provide examples of voluntary boundaries, Can you provide e...

Can you provide examples of voluntary boundaries, core practices, and mandated boundaries in various industries? Why do the boundaries you identify fit within each category?

Explain own personal devices used for work, BYOD and we are reading so much...

BYOD and we are reading so much about BYOD (bring-your-own-device). Are the mobile devices you use for business owned by the company or are they your own personal devices used for

Objectives of production control, Objectives of Production Control An...

Objectives of Production Control An enterprise wishes to obtain the following objectives through production control: 1.Making necessary arrangement for the production of goo

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