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

MBA, A paper mill produces two grades of paper viz., X and Y. Because of ra...

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

Finite loading and infinite loading, Finite Loading and Infinite Loading ...

Finite Loading and Infinite Loading Finite Loading Loading procedures are categorized as either finite loading or infinite loading. In finite loading jobs are assigned t

Lean Synhcronization, Explain how you woul eliminate waste through flexible...

Explain how you woul eliminate waste through flexible processes

Explain carpet cleaning machine, Gabriela Manufacturing must decide whether...

Gabriela Manufacturing must decide whether to insource or outsource a new toxic-free miracle carpet cleaner that works with its Miracle Carpet Cleaning Machine. If it decides to in

Explain what design capacity would be needed, In a job shop, effective capa...

In a job shop, effective capacity is only 50% of design capacity, and actual output is 80% of effective output. What design capacity would be needed to achieve an actual output of

Define internal vs external recruiting, Compare internal vs external recrui...

Compare internal vs external recruiting. When would you want to use each option? what are some advantages and disadvantages of each?

Explain what type of noise was experienced, Choose a communication situatio...

Choose a communication situation you recently experienced at your workplace or other organization you are affiliated with. Use the human communication process described on pages 10

What are the steps in the method study procedure, 1. What are the steps in ...

1. What are the steps in the method study procedure?  Answer: Select, record, examine, develop, install, maintain.

Define the negative impacts of business intelligence, What are the negative...

What are the negative impacts of business intelligence? How does a database and data warehouse support business intelligence?

Explain how does the pursuit of outsourcing align, Should Galanz continue t...

Should Galanz continue to expand its capacity through outsourcing arrangements? How does the Pursuit of outsourcing align with its operations strategy?

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