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

Presume the restaurant operates 360 days per year, A fast-food restaurant b...

A fast-food restaurant buys hamburger buns from a national bakery supplier. The daily usage of buns at the restaurant is normally distributed with an average of 160 and standard de

Least factors to a project manager when building a team, Compare and contra...

Compare and contrast attributes that are most and least important to a project manager when building a team. Provide a work or project example to support your answer. Back up your

Calculate annual demand for the inventory item, Ashish  keeps  his  invento...

Ashish  keeps  his  inventory in special containers. Each  container occupies 10  sq fit of  store space. Only  5000 sq ft  of the storage space is available. The  annual demand fo

Explain production system that consists of a single station, Consider a pro...

Consider a production system that consists of a single station with a production rate of 1 part per minute and a process variability given by Ce=1.

Explain issues facing ceos and organizations, Given that frame, what are so...

Given that frame, what are some of big issues facing CEOs and Organizations. Which ones do you think are the most problematic in terms of impacting strategy?

Line balancing, What do you understand by “line balancing”? What happens if...

What do you understand by “line balancing”? What happens if balance doesn’t exist?

Examine netflix''s current strategy, Evaluate Netflix's current strategy an...

Evaluate Netflix's current strategy and determine if the strategy is sustainable. Identify a Netflix strength may be leveraged in the market place to ensure a competitive advantage

Explain counteract prejudice, Counteracting Prejudice One of the simplest a...

Counteracting Prejudice One of the simplest and most powerful ways to counteract prejudice and discrimination is to articulate and share stereotypes and preconceived notions. How c

Explain social responsibility, Regarding Social Responsibility, who do you ...

Regarding Social Responsibility, who do you agree with more, Leonard (2013) or Friedman (1970)? Why?

Benefits long-term employees in the firm''s home country, Under what condit...

Under what conditions is it ethically defensible to outsource production to a developing world where labor costs are lower when such actions also involve laying off long-term emplo

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