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

Calculate the total cost of ordering and carrying clay pots, 1. Garden Vari...

1. Garden Variety Flower Shop uses 1000 clay pots a month. The pots are purchased at $3 each. Annual carrying costs per pot are estimated to be 25% of cost, and ordering costs are

Methods used in manufacturing - operation strategy, Methods Used in Manufac...

Methods Used in Manufacturing - Operation Strategy Many of the methods used in manufacturing are just as applicable; however a greater degree of customisation will be required

Explain implement a back command as a single word, • Open the original proj...

• Open the original project zuul-better that you first encounter in this unit%u2019s required reading. Save it using a different name, in this format: zuul-last_name_first-initial.

Explain the concept of merit goods, Explain the concept of merit goods with...

Explain the concept of merit goods with reference to the formal provision of education in a country.  Merit goods are those goods and services that society values and the gover

Determining operations strategy - traditional approaches, Determining Opera...

Determining Operations Strategy - Traditional and Emerging Approaches Three known and acknowledged procedures are presented here: the Hill, Platts and Gregory, and the Slack

Explain finite backward scheduling, A process capacity methodology that is ...

A process capacity methodology that is used to show how well parts being produced fit into a range specified by design limits is which of the following? a. Finite backward sche

Explain the upper or lower control limits for a mean chart, The overall ave...

The overall average on a process you are attempting to monitor is 50 units. the process standard deviation is 1.72. Determine the upper and lower control limits for a mean chart, i

Steps in layout planning and design, Steps in Layout Planning and Design ...

Steps in Layout Planning and Design For a given product at a stated volume of production a process most appropriate must be determined. The process that is determined like any

Explain effectiveness change as an organization grows, The __________ _____...

The __________ ____________ ___________ approach to success suggests that measures of effectiveness change as an organization grows. Answer

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