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

Process adjustment and process capability, Process Adjustment and Process C...

Process Adjustment and Process Capability Process adjustment In the event of the process veering towards non-conformance as a result of variables which are not inherent t

Explain five common reasons that projects crash, Discuss two of the five co...

Discuss two of the five common reasons that projects crash. Relate your response to a project failure that you have experienced or witnessed

Explain self-managed teams perform entire jobs, Self-managed teams perform ...

Self-managed teams perform entire jobs, rather than specialized assembly-line work.

Explain legal and compliance policies and practices, What are Apples Inc.? ...

What are Apples Inc.? Legal and compliance policies and practices. Elaborate and comprehensive on your response

Describe traffic accidents requiring medical assistance, It has been observ...

It has been observed that the average number of traffic accidents requiring medical assistance in Santa Clara between 7 and 8 AM on Wednesday mornings is 1. What, then, is the chan

Find the total cost of ordering and carrying semiprecious, 1. A jewelry fir...

1. A jewelry firm buys semiprecious stones to make bracelets and rings. The supplier charges $20 per stone, annual carrying costs are 50%, and the cost of processing orders is $40.

How to use the virtual organization link on the student, Resources: Univers...

Resources: University Library, Kudler Fine Foods Virtual Organization Use the Virtual Organization link on the student website to access additional company information on Kudler

How x control chart is used, How X control chart is used? X control cha...

How X control chart is used? X control chart is used with go and not go inspection.

Explain when quality discounts are introduced, When quality discounts are i...

When quality discounts are introduced, will optimum order quantity be made smaller, unchanged, or larger? Illustrate by using a numerical example.

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