Supply charges MBC $225 per order to cover the expenses of delivering and transferring the fuel to MBC's storage tanks. The lead time for a new shipment from American Petroleum is 10 days; the cost of holding a gallon of fuel in the storage tanks is $0.03 per month, or $0.36 per year; and annual fuel usage is 180,000 gallons. MBC buses operate 300 days a year. (a) What is the optimal order quantity for MBC? (b) How frequently should MBC order to replenish the gasoline supply? -Select-v per -Select-- ♥ (c) The MBC storage tanks have a capacity of 17,500 gallons. Should MBC consider expanding the capacity of its storage tanks? The maximum inventory is MBC Select v to expand its storage tanks. (d) What is the reorder point (in gallons)? gallons

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
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The Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost, American Petroleum
Supply charges MBC $225 per order to cover the expenses of delivering and transferring the fuel to MBC's storage tanks. The lead time for a
new shipment from American Petroleum is 10 days; the cost of holding a gallon of fuel in the storage tanks is $0.03 per month, or $0.36 per
year; and annual fuel usage is 180,000 gallons. MBC buses operate 300 days a year.
(a) What is the optimal order quantity for MBC?
(b) How frequently should MBC order to replenish the gasoline supply?
-Select-v per -Select-
(c) The MBC storage tanks have a capacity of 17,500 gallons. Should MBC consider expanding the capacity of its storage tanks?
The maximum inventory is
MBC -Select-
vto expand its storage tanks.
(d) What is the reorder point (in gallons)?
gallons
Transcribed Image Text:The Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost, American Petroleum Supply charges MBC $225 per order to cover the expenses of delivering and transferring the fuel to MBC's storage tanks. The lead time for a new shipment from American Petroleum is 10 days; the cost of holding a gallon of fuel in the storage tanks is $0.03 per month, or $0.36 per year; and annual fuel usage is 180,000 gallons. MBC buses operate 300 days a year. (a) What is the optimal order quantity for MBC? (b) How frequently should MBC order to replenish the gasoline supply? -Select-v per -Select- (c) The MBC storage tanks have a capacity of 17,500 gallons. Should MBC consider expanding the capacity of its storage tanks? The maximum inventory is MBC -Select- vto expand its storage tanks. (d) What is the reorder point (in gallons)? gallons
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