The Metropolitan Bus Company (MBC) purchases diesel fuel from American Petroleum Supply. In addition to the fuel cost, A

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The Metropolitan Bus Company Mbc Purchases Diesel Fuel From American Petroleum Supply In Addition To The Fuel Cost A 1 (50.33 KiB) Viewed 29 times

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 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 $0.02 per month, or $0.24 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--- ✓ per ---Select--- V (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--- to expand its storage tanks. (d) What is the reorder point (in gallons)? gallons Need Help? 2. [-/20 Points] DETAILS Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7,600 copies. The cost of one copy of the book is $13.50. The holding cost is based on an 18% annual rate, and production setup costs are $150 per setup. The equipment with which the book is produced has an annual production volume of 25,000 copies. Wilson has 250 working days per year, and the lead time for a production run is 15 days. Use the production lot size model to compute the following values. (Round your answers to two decimal places.) (a) Minimum cost production lot size Read It (c) Cycle time (b) Number of production runs per year (d) Length of a production run (in days) days (e) Maximum inventory ASWMSCI15 10.E.013. (f) Total annual cost (in $) $ (g) Reorder point MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER