The Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost,American Petroleum Supply charges MBC $150 per order to cover the expenses of delivering and transferring the fuel toMBC's storage tanks. The lead time for a new shipment from American Petroleum is 10 days; the cost of holding a gallon offuel in the storage tanks is $0.02 per month, or $0.24 per year; and annual fuel usage is 180,000 gallons. MBC busesoperate 288 days a year.(a) What is the optimal order quantity for MBC?(b) How frequently should MBC order to replenish The gasoline supply?-Select- per ---Select--(c) The MBC storage tanks have a capacity of 17,500 gallons. Should MBC consider expanding the capacity of its storagetanks?The maximum inventory is(d) What is the reorder point (in gallons)?gallonsNeed Help?Read itIddebat inMBC-Select--✓to expand its storage tanks.

Economic Order Quantity(EOQ) is the optimal ordering unit based on the consideration of ordering and…

Answered: The Metropolitan Bus Company (MBC)…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Similar questions

A shoe manufacturer uses 2,000 rubber soles per year for its popular shoe line. The firm makes its own soles, which it can produce at a rate of 90 per day. The shoes are assembled uniformly over the entire year. Carrying cost is $4 per sole a year. Setup cost for a production run of soles is $20. The firm operates 200 days per year. Determine cycle time for the optimal run size. Group of answer choices: A. 5 days B. 10 days C. 15 Days D. 20 days
Fuego Limited is a table-glass retailer located in Vancouver. The company purchases glasses from Anderson PLC. The details of the table glasses are as follows: The purchase price per glass – $3,000 Cost of an order - $500 The annual cost of carrying a glass - 2% of the purchase price Monthly Demand - 1,250 Units The company has been offered a discount of 1% on the price of a table glass if the lot size is 3,000 table glasses at a time. Required: i. Calculate the Economic Order Quantity. ii. Calculate the total inventory cost. iii. Draw a graph and discuss the behavior of the total inventory holding cost, total ordering cost, and total cost for the given scenario. iv. Advise whether the quantity discount offer can be accepted (Assume that the inventory carrying cost does not vary according to the discount policy)
Jasmine owns 12 apartment buildings in a college town, which it rents exclusively to students. Each apartment building contains 120 rental units, but the owner is having cash flow problems due to an average vacancy rate of nearly 50 percent. The apartments in each building have comparable floor plans, but some buildings are closer to campus than others. Jasmine’s accumulated data from last year on the number of apartments rented, the rental price (in dollars), and the amount spent on advertising (in hundreds of dollars) at each of the 12 apartments are available below. These data, along with the distance (in miles) from each apartment building to campus, are presented below. Jasmine is looking for expert advice on the available data to inform administrative and business policy. By applying this scenario, help her regress the quantity demanded of her apartments on price, advertising, and distance datasets by using Excel or SPSS. Observation or (Number of Apartments) Quantity…
Please do not give solution in image format thanku Ram Roy's firm has developed the following supply, demand, cost, and inventory data. Supply Available Period Regular Time Overtime Subcontract Demand Forecast 1 40 15 15 50 2 30 15 15 55 3 40 20 15 60 Initial inventory 30 unitsRegular-time cost per unit$100 Overtime cost per unit$160 Subcontract cost per unit$250 Carrying cost per unit per month$4 Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Part 2 Allocating production capacity to meet demand at a minimum cost using the transportation method, the total cost is $enter your response here (enter your response as a whole number).
Services differ from goods in that I. A service is a tangible process II. A service is an intangible process III. Services can be stored IV. Services cannot be stored V. Services are perishable and time-dependent Option IV and V Option II and IV Option II, IV, and V Option I and III

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