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

Information can be use effectively finish the swot analysis, 1. List at lea...

1. List at least FIVE sources you will use to obtain information about the firm%u2019s strengths, weaknesses, opportunities, and threats. Discuss what categories of the SWOT elemen

Explain justify a strategic information system, Why might it be difficult t...

Why might it be difficult to justify a strategic information system?

Explain productivity change for labour and investment, Charles Lackey opera...

Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occas

Product redesign, factors that influence redesign process

factors that influence redesign process

Productivity measurement in organisations, Productivity Measurement In...

Productivity Measurement In Productivity measurement, we identify the factors affecting productivity and divide them into two major categories: external and internal. We ident

Rules related to the use the human body, Rules Related to the  use  the ...

Rules Related to the  use  the Human  Body: R elated to the  use  the Human  Body : a.   The two  hands should  beings  as well as  complete their  motions  at the same

Explain health care information systems, 1. Analyze the basic technology un...

1. Analyze the basic technology underlying health care information systems and determine the most pressing need for innovation. 2. Explain (with specific examples using local hospi

Explain factors contributing to competitive rivalry include, Factors contri...

Factors contributing to competitive rivalry include A) The corporate attitudes toward marketing strategies B) Nature of the product and homogeneity of market C) The suppor

Explain task sociocultural technological political economic, The ____ dimen...

The ____ dimension refers to the methods available for converting resources into products and services. Task sociocultural technological political economic

Explain quality academic resources in this assignment, Assume that you are ...

Assume that you are a business owner or business professional, in a company and industry of your choice, responsible for creating and executing the companys strategic plan. 1. D

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