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

MBA, Describe the various approahes to tqm

Describe the various approahes to tqm

What is reliability is decriminator in cost of gps receivers, The DAGR GPS ...

The DAGR GPS receiver will have a 25% increase inreliability over the PLGR GPS receiver. Using the PLGR as an analogy, an analyst estimated that the DAGR would cost 25% more than t

#, what do you understand by "line balancing"? what happens if balance dose...

what do you understand by "line balancing"? what happens if balance dosen''t exist?

Generic operational strategies - operation strategy, Generic Operational St...

Generic Operational Strategies - Operation Strategy Porter (1985) presented five basic generic strategies for business:  1. Cost efficiency - low cost leadership strategy

Define the important feature of collective bargaining, Define the important...

Define the important feature of collective bargaining. The important feature of collective bargaining is give and take.

Compute forecasted sales, In the table given below the Distribution Manager...

In the table given below the Distribution Manager is expected to service these DCs as per the demands placed. If the actual sales after completing week one is as follows, what woul

Current trends in operation management, What is the relationship between ma...

What is the relationship between mass customisation and rapid product development

Explain the working of employees in flexible organisations, Explain the wor...

Explain the working of employees in flexible organisations. Working of employees in flexible organisations: • Production workers may be needed to take on indirect tasks as l

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