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What is the optimal order quantity for MBC? Q* = 20,000 How frequently should MBC order to replenish the gasoline supply? fill in the blank orders per year The MBC storage tanks have a capacity of 15,000 gallons. Should MBC consider expending the capacity of its storage tanks? Metropolitan Bus Company     the capacity of its storage tanks. What is the reorder point?

What is the optimal order quantity for MBC? Q* = 20,000 How frequently should MBC order to replenish the gasoline supply? fill in the blank orders per year The MBC storage tanks have a capacity of 15,000 gallons. Should MBC consider expending the capacity of its storage tanks? Metropolitan Bus Company     the capacity of its storage tanks. What is the reorder point?

Practical Management Science
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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Problem 10-05 (Algorithmic)

The Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost, American Petroleum Supply charges MBC $300 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 240,000 gallons. MBC buses operate 300 days a year.

 

  1. What is the optimal order quantity for MBC?

    Q* = 20,000

  2. How frequently should MBC order to replenish the gasoline supply?

    fill in the blank orders per year

  3. The MBC storage tanks have a capacity of 15,000 gallons. Should MBC consider expending the capacity of its storage tanks?

    Metropolitan Bus Company 
     
     the capacity of its storage tanks.

  4. What is the reorder point?

    r = fill in the blank 
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