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Monica [59]
3 years ago
12

Metropolitan Bus Company purchases diesel fuel from American Petroleum Supply. American Petroleum Supply charges $250.00 to cove

r delivery expenses. The lead time for a new shipment from American Petroleum is 10 days and the cost of holding a gallon of fuel in storage is $0.04 per month or $0.48 per year and annual fuel usage is 150,000 gallons. MBC operates 300 days a year. What is the optimal order quantity for MBC? How frequently should MBC order to replenish the gasoline supply? The MBC storage tanks have a capacity of 150,00 gallons. Should MBC consider expanding the capacity of its storage tanks? What is the reorder point?
Business
1 answer:
iVinArrow [24]3 years ago
6 0
Thank you for posting your question here at brainly. I hope the answer will help you. Feel free to ask more questions.
The answer is 12500. Below is the solution for the above question:EOQ= sqrt (2*150000*250)/.48 
<span>EOQ= 12500</span>

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B.

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