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

How to implement new hr strategic objectives, Identify and describe a curre...

Identify and describe a current situation, within your current or former organization, where the challenges of the process of change, due to a competitive global environment, has

Case Study, After working for 30 years, Ramjee Somjee Dutt opted for VRS an...

After working for 30 years, Ramjee Somjee Dutt opted for VRS and started a courier company and did very well in the first four years. He was now looking for expansion of his busine

Explain establishing team operating principles, Team operating principles a...

Team operating principles are sometimes included in a project charter to enhance team functioning. Which of the following statements accurately describes the value of establishing

Logistics, suggested modification in enhancing logistics system

suggested modification in enhancing logistics system

Explain company policy on grounds of adultery, Company vice-president, acti...

Company vice-president, acting with what he thought to be company policy, fired a manager (Dean) that had filed for divorce and moved in with a female co-worker. He was fired on gr

What are the five criteria for evaluating a selection method, What are the ...

What are the 5 criteria for evaluating a selection method?

Explain strategic decisions influence the power of the party, Determining t...

Determining the bargaining unit occurs before certification is obtained whereas determining the bargaining structure occurs after, but both strategic decisions influence the power

Explain security and financial controls, Please explain in detail the answe...

Please explain in detail the answer for the following scenario: You are an IT project manager and have been given an unrealistic deadline. In order to get a project done on the req

Supplier relationships in a supply network, Supplier relationships in a sup...

Supplier relationships in a supply network are categorised in which ways:- Single, multiple, delegated and parallel

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