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

[email protected], Ask qu2 The historical development of operations...

Ask qu2 The historical development of operations managementestion #Minimum 100 words accepted#

Are there different types of operations systems, 1. Are there different typ...

1. Are there different types of operations systems?  Ans: Yes, characteristics show that manufacturing companies break down into categories as do service organisations. Once the

Is true or not that demand for product is not a constraint, Which of the fo...

Which of the following is true? Once you complete the five steps, the process is complete. Another constraint will always appear when the original constraint is broken. De

Explain characteristics of a definable sample group, Which of the following...

Which of the following requires the opinion of an expert to determine the location and characteristics of a definable sample group? Judgment sample Simple random sample S

Order winning and order qualifying criteria, 1. What you think might be the...

1. What you think might be the order winning and order qualifying criteria for: McDonald's, Southwest Airlines and a university?  Answer:

Explain how od interventions need to be adapted, Describe how OD interventi...

Describe how OD interventions need to be adapted to fit different cultural contexts.

Explain type of inventory management, What are some different companies tha...

What are some different companies that could benefit from using this type of inventory management and why?

Operation function, meaning of operation function in operation management

meaning of operation function in operation management

Explain the case of the marginalized workers, The Problem: The Case of the ...

The Problem: The Case of the Marginalized Workers You have decided to sub-contract out your grounds maintenance work. You have solicited bids for landscaping, a revamped irrigat

Factors affecting productivity improvement, Factors Affecting Productivity ...

Factors Affecting Productivity Improvement  As has already been stressed, productivity improvement is not simply concerned with finding ways of making people work harder, nor

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