Business, 28.12.2019 04:31, williamschris462

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.

a. what is the optimal order quantity for mbc?
b. how frequently should mbc order to replenish the gasoline supply? c. the mbc storage tanks have a capacity of 240,000 gallons. should mbc consider expanding the capacity of its storage tanks? d. what is the recorder point?

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The metropolitan bus company (mbc) purchases diesel fuel from american petroleum supply. in addition...