What will be the average inventory of fuel

Assignment Help Operation Management
Reference no: EM13505329

Jack owns a local trucking company. With the high fuel costs, Jack wants to evaluate how much fuel, on average, he should store in his 35,000 fuel tank. Each year Jack uses 30,000 gallons of diesel (usage is spread evenly throughout the year). Jack knows with certainly that he can have a load of fuel delivered in 10 days. Jack says, "The darn delivery service charges a $150 fee for each delivery, no matter how much I purchase." Earlier this year Jack hedged his fuel at $2.00 per gallon. Jack does some horse trading on the side, so he thinks his holding cost per unit is $0.10. If Jack orders at EOQ, what will be the average inventory of fuel in his 35,000 gallon tank?

Reference no: EM13505329

Questions Cloud

Explain the hydronium ion concentration in pure water : At 10 degrees Celsius, the autoionization constant for pure water, Kw, is 2.92e-15. What is the hydronium ion concentration in pure water at this temperature
Determine how much power is saved : Estimate how much power is saved if the voltage is stepped up from 240 V to 1200 V and then down again, rather than simply transmitting at 240 V
Prepare the journal entries for the lessee for 2012 : Prepare an amortization schedule that would be suitable for the lessee for the lease term - prepare the journal entries for the lessee for 2012 and 2013 to record the lease agreement
Explain the systematic name for each diene : Draw two conjugated dienes, and two nonconjugated dienes, each with the formula C7H12 and the base name hexane. Provide the systematic name for each diene.
What will be the average inventory of fuel : What will be the average inventory of fuel in his 35,000 gallon tank?
Prepare a pension worksheet the pension worksheet : Prepare a pension worksheet. On the pension worksheet, compute pension expense, pension asset/liability, projected benefit obligation, plan assets, prior service cost, and net gain or loss.
Describe the type of hospitality industry : Describe the type of hospitality industry and its main categories of employees
State determinations of acid-base titrations be done : Why is it important that all determinations of acid-base titrations be done at the same temperature
Explain the reaction proceeds to completion : The flasks is opened, and the gases are allowed to mix thoroughly, the following reaction proceeds at constant temperature. What is the resulting total pressure of gases in now-joined flasks after the reaction proceeds to completion

Reviews

Write a Review

Operation Management Questions & Answers

  What alternative pay programs might be considered

Would the profit sharing plan have the same effect on all types of employees? Is the size of your organization an important consideration? Why? What alternative pay programs might be considered?

  How much do you get charged per day

what if you return the book late? how much do you get charged per day?

  What are some of the challenges that are faced in industry

What are some of the challenges that are faced in industry today with regard to schedules and time fences?

  Discuss the legalese of bribery and bartering

discuss the legalese of bribery and bartering? Compare and contrast business ethics of two foreign countries.

  Morally acceptable for job candidates

Determine whether or not you believe that it is morally acceptable for job candidates who choose to alter their appearance - for example, by dying their hair, getting tattoos

  Explain entry also exit in airline passenger business

Use competitive firm short run supply curve concept to explain entry also exit in airline passenger business. Why are pilots so well paid.

  Bindley corporation has a one-year contract to supply

bindley corporation has a one-year contract to supply motors for all washing machines produced by rinso ltd. rinso

  Illustrate what data management problems have arisen

Illustrate what data management problems have arisen. Elucidate how has MySpace solved or attempted to solve these problems.

  Drive through window at the downtown urbana

Automobiles arrive at the drive through window at the downtown Urbana, Illinois, post office at the rate of 4 every 10 minutes (or .4/min)= lambda

  Explain why do you think ikea expansion into europe went

Explain why do you think IKEA's expansion into Europe went so well. Explain why did the organization subsequently stumble in North America.

  Peer-reviewed article that reports original research

Illustrate the business research and its purpose. Describe the business problem(s) under investigation.

  If a corporation is incorporated in deleware

If a corporation is incorporated in Deleware, has its main office in New York, and does business in California, but the presedent lives in Connecticut, in which state or states can it be sued?

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