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Steve owns a local trucking company. With fuel costs being expensive, Steve wants to evaluate how much fuel, on average, he should store in his 8,000 gallon fuel tank. Each year Steve uses 80,000 gallons of diesel (usage is spread evenly throughout the year). Steve knows with certainly that he can have a load of fuel delivered in 5 days. The price of fuel is $3.25 per gallon and there is a separate $100 ordering fee per order. Steve thinks his holding cost per unit is 20%. If Steve orders at EOQ, what will be the average inventory of fuel in his 8,000 gallon tank?
The manager of a small health clinic would like to use exponential smoothing to forecast demand for emergency services in the facility. However, she is not sure whether to use
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