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

Explain actual and forcasted demand level, The following are monthly actual...

The following are monthly actual and forcasted demand level for may through December for units of product manufactured by N. Month Actual demand Forecast demand May 100 102

Describe set up more responsible governance, You are consulting with a comp...

You are consulting with a company that is failing. It seems the CEO (recently fired) paid no attention to the board of directors. He was also heard to say, "I don't serve stockhold

What are the advantages accrue to training evaluation, What advantages accr...

What advantages accrue to training evaluation that measures return on investment (ROI)? What are some of the obstacles to implementing ROI measures, and how can they be overcome?

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

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

Explain optimization technique and a heuristic to solve, What is the differ...

What is the difference between using an exact optimization technique and a heuristic to solve a problem?

Who are involve in top management, Who are involve in top management ? T...

Who are involve in top management ? Top management level involves Board of Directors, Chief Executive and General Manager and Managing Directors.

Explain the first step in the process is idle, A bottleneck is an operation...

A bottleneck is an operation that has the lowest effective capacity of any operation in the process. TRUE/FALSE. Write 'T' if the statement is true and 'F' if the statement i

Explain nlra rules regarding union, How does the law regarding union recogn...

How does the law regarding union recognition for public employees in the state of Florida compare with the NLRA rules regarding union recognition for private-sector employees?

What is the relationship among companies and profit motives, What is the re...

What is the relationship between companies, profit motives, competition and private property?

How is the chase demand strategy opposite of level capacity, How is the cha...

How is the chase demand strategy opposite of level capacity? Chase demand strategies: Chase demand strategies are the totally opposite of level capacity in which the orga

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