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 impact of globalization and information technology, Assess the impa...

Assess the impact of globalization and information technology on the creation of small businesses. Determine if and how these two trends have helped or hindered the growth of small

Explain how to create a living, What would you suggest to companies on how ...

What would you suggest to companies on how to create a living, adapting marketing plan?

Explain health care reform bill decision making essay, Health Care Reform B...

Health Care Reform Bill Decision Making Essay Review websites for critical decision making in relation to the Health Care Bill of 2010. What do you believe the decision making p

Determine the order size that will minimize the total cost, You are the Sto...

You are the Stores Manager at the Ministry of Information and you have the responsibility of managing store room No. 101 where all blank papers for this Ministry are kept. The ann

Supply Network, In a 1-2 page paper with a graphic as an appendix, identify...

In a 1-2 page paper with a graphic as an appendix, identify a supply network and evaluate the importance of operations management in moving this product through the supply chain to

Explain project lacking a time-phrase baseline, Create a worst-case scenari...

Create a worst-case scenario for a project lacking a time-phrase baseline. Also discuss if you were ever in such a situation, the outcomes of the situation and what you learned. Th

CUSTOMER SERVICE, THE SCOPPE AND NEED OF CUSTOMER SERVICE

THE SCOPPE AND NEED OF CUSTOMER SERVICE

Explain the type of material handling systems, Describe the type of materia...

Describe the type of material handling systems used in warehouses?

Explain the eight general strategies in the business buying, Describe the e...

Describe the eight general strategies in the business buying decision process.

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