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

How must organisations have the flexibility to demand occur, How must organ...

How must organisations have the flexibility to demand occur? Forecasting demand can be complicated and unreliable into an uncertain environment. Therefore a balance requires to

What are the advantages of process mapping, What are the advantages of proc...

What are the advantages of process mapping? Advantages of process mapping are as follows: a. It can be used for structured ‘walk by testing to confirm knowing of workflow, c

Variety management, what are the different methods of variety management of...

what are the different methods of variety management of manufactured goods

Trade off between delivery and flexibility, Trade off Between Delivery and ...

Trade off Between Delivery and Flexibility Pagell et al (2000) argue that the trade-off concept is based on Skinner's quandary that a manufacturing plant could not be configur

LINE BALANCING, WHAT DO YOU UNDERSTAND BY LINE BALANCING

WHAT DO YOU UNDERSTAND BY LINE BALANCING

Explain a company''s financial and operational requirements, Decisions abou...

Decisions about pay structure in global companies affects: Answer (1) a company's financial and operational requirements. (2) The cost and availability of qualified workers. (3) Th

Explain marketing research process, Discuss the six steps in the Marketing ...

Discuss the six steps in the Marketing Research process and relate to any company/product/service that you know or are familiar with.

Explain make-or-buy in decision, Consider the make-or- buy in decision. Giv...

Consider the make-or- buy in decision. Give three examples of situations in which a business should make, rather than buy. Give three examples of situations in which a business sho

Explain disadvantages from the healthcare organizations, Determine two adva...

Determine two advantages and two disadvantages from the healthcare organizations perspective for requiring a Certificate4 of Need (CON). Identify 3 states that require a Certificat

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