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

Simo chart, It is sometimes required to record in minute detail the si...

It is sometimes required to record in minute detail the simultaneous movement of the different parts of the body of an operator during the performance of a single

Describe how hr evolved throughout this process, HR has moved from an admin...

HR has moved from an administrative function to a transformational function. This change is based on automating HR functions through an HRIS system. Explain how HR evolved througho

Process capability index - asymmetrical positioning, Process Capability Ind...

Process Capability Index - Asymmetrical Positioning of the Process As stated earlier, the C p index assumes that the process mean is centred within the tolerance band, but, i

Dont know, Q. A textile manufacturer is interested in optimally determined...

Q. A textile manufacturer is interested in optimally determined inventories for cutting operations for a children’s product line. The production manager would like to establish th

Calculate wal-marts shift in strategy from just saving money, "Wal-Mart Sto...

"Wal-Mart Stores Inc." Please respond to the following: • Assess how the constant bashing of Wal-Mart by the media impacted Wal-Marts ability to operate effectively in the commu

Explain purpose of completing the applied project, Students will choose lea...

Students will choose leader/s for the purpose of completing the applied project, which will be completed in two separate components (Mid Term and Final)-see syllabus, each of which

Explain the most likely outcome of leon''s lawsuit and why, Leon, a bank v...

Leon, a bank vice president, joined Fitness Center, Inc. (FC). He signed a contract for the membership. The contract stated, among other things, an exculpatory clause that FC.

Explain development of the germ theory of disease, In the 19th century hosp...

In the 19th century hospitals had notorious reputations questionable places to visit, risky places to stay. What advances changed all this? a.development of the germ theory of d

Explain the characteristics of effective teams, Discuss the characteristics...

Discuss the characteristics of effective teams? What are the challenges managers face when managing global teams?

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