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 effort-driven, Answer the followingquestions (use MS Project help i...

Answer the followingquestions (use MS Project help if necessary)- Define effort-driven? Under what circumstances would you turn off effort driven scheduling? Use a real-wo

Explain what are the boundary points of the feasible region, Maxwell Manufa...

Maxwell Manufacturing makes two models of felt tip marking pens. Requirements for each lot of pens are given below. Fliptop Model Tiptop Model Available Plastic 3 4

Deliberate sampling, Deliberate Sampling : Also  known  as purposive o...

Deliberate Sampling : Also  known  as purposive or non probability sampling this  sampling methods involves purposive or deliberate selection of  particular  unit  of the univ

Explain united states and the european union, Code of Conduct in the Europe...

Code of Conduct in the European Union and Statement of Ethics discuss and compare the two codes from these marketing association. Discuss the similarities and differences between t

What are the benefits and limitations of e-business, 1. Describe, in genera...

1. Describe, in general terms, the quality of staff needed to manage an ERP system?  2. According to Cisco Systems, on what simple truth is their entire Internet commerce initia

Explain team meetings can be helpful, Team meetings can be helpful. Interor...

Team meetings can be helpful. Interorganizational conflict is conflict that arises across organizations. What are sources of conflict?

Define cross-cultural communication, When referring to Cross-Cultural Commu...

When referring to Cross-Cultural Communication, what would be the best approach to dealing with a multicultural environment.

Explain how the government can implement information plan, Propose a plan f...

Propose a plan for how the government can implement information security plans to ensure its critical information is safe and protect.

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