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

Describe how preferred outcomes are derived in the short run, Discuss how p...

Discuss how preferred outcomes are derived in the short run?

Describe the idea that an information system, Discuss the idea that an info...

Discuss the idea that an information system by itself can rarely provide a sustainable competitive advantage?

Explain what advice might herzberg give bridget, Bridget Jones has been the...

Bridget Jones has been the manager of the research office at her company for over a year. She is beginning to wonder if she will ever be comfortable in this role. Her employees see

Typical financial performance measures, Typical Financial Performance Measu...

Typical Financial Performance Measures  Profitability - Profit margin, return on capital invested, return on equity Liquidity - Current ratio, cash position, working ca

Most vital factor in determining a company''s unit sales, Which of the foll...

Which of the following is the most important factor in determining a company's unit sales and market share of private-label footwear in a particular geographic region? a The len

Explain sow contains words such as nearly or approximately, If the customer...

If the customers SOW contains words such as nearly or approximately, then: Answer The project manager uses his discretion in determining the meaning The sponsor uses his d

Layout, what are the objectives that an operation should could consider in ...

what are the objectives that an operation should could consider in order to ensure a good layout

Explain advantages of matrix organization, Explain advantages of matrix org...

Explain advantages of matrix organization. Advantages of matrix organization (i)  Permitting better planning and control to meet deadline if effectively focuses resource

Depict the precedence diagram, An assembly line is to be designed to operat...

An assembly line is to be designed to operate 7 1/2 hours per day and supply a steady demand of 300 units per day. Here are the tasks and their performance times: PRECEDING Perf

Explain were the british more responsible for losing the war, Were the Brit...

Were the British more responsible for losing the war or were the colonists more responsible for winning it? Use specific examples from this week's readings to support your respons

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