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 increase the objective function value which is good, Could someone ...

Could someone please explain how the objective function value would change when the right hand side value changes? For maximization questions: For a positive shadow price, an incre

Integration of social networking with web 2.0 capabilities, Choose any comp...

Choose any company website and evaluate its effectiveness. Write an essay of between 750-1000 words, double-spaced, focusing on such topics as the web site's attractiveness and the

Why is environmental analysis is vital for an organization, Q1. Why is envi...

Q1. Why is environmental analysis important for an organization? Q2. Write a double-spaced essay of between 750-1000 words on the value of business process improvement to an ind

What are some new products organizational markets, What are some new produc...

What are some new products I could use that serve two business (organizational) markets?

Answer, What happens if balance doesn’t exist?

What happens if balance doesn’t exist?

Class work, define the following key terms in product layout: a) Product in...

define the following key terms in product layout: a) Product interval time b) Product duration (throughput time) c) Assembly line balancing

Explain what is the maximum possible output per week, An assembly line with...

An assembly line with 7 tasks is to be balanced. The longest task is 8 minutes, the shortest task is 2 minutes, and the sum of the task times is 53 minutes. The line will operate f

Calculate the standard time for the job, An  industrial  engineer  has obta...

An  industrial  engineer  has obtained the  following data  in connection  with a  time  study on  the lines  of the Hawthorne  studies  taking  four different  elements  and five

Explain what are the capacity requirements, Always Rain Irrigation, Inc., w...

Always Rain Irrigation, Inc., would like to determine capacity requirements for the next four years. Currently two production lines are I place for making bronze and plastic sprink

Explain functions of marketing management, Explain functions of marketing m...

Explain functions of marketing management. Functions of Marketing Management: The broad functions of marketing management includes as in following : (i) Marketing Research

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